Seller’s market? Bay Area home sales slip, but prices soar

Declining Bay Area home sales last month made it the most sluggish February in nine years, but prices jumped sharply as buyers bid on a shrinking supply of single-family homes.

Prices soared 11.4 percent higher across the nine-county region compared with the same month of the prior year, reaching a median price of $675,000 — the largest such increase in more than a year.

“It’s the first double-digit price gain since January 2016, when the median went up 14 percent,” said Andrew LePage, a research analyst with the CoreLogic real estate information service, which published the figures Thursday in its monthly report.

Earlier this week, Trulia, the real estate website, issued a report stating that the Bay Area housing supply has dramatically contracted. Over the past five years, Trulia said, total inventory — including starter homes, mid-tier trade-up homes and luxury homes — has declined 59.6 percent in Alameda and Contra Costa counties; 63.5 percent in Santa Clara and San Benito counties; and 62 percent in San Francisco and San Mateo counties.

Yet job growth continues in the region and competition for homes is a natural outcome. In tech-centric hot spots like Sunnyvale, bidding can get out of hand. Alain Pinel agent Mark Wong noted a dozen Sunnyvale homes that sold last month for between $202,000 and $401,000 over the asking price.

“It’s scary, right?” he asked. “The listing price doesn’t mean anything.”

“Declining Bay Area home sales last month made it the most sluggish February in nine years, but prices jumped sharply as buyers bid on a shrinking supply of single-family homes”

This is mainly due to low inventory, but not from extended period of homes on market !

So price is going to take a big hike again? Buy fast and make a momentum trade, Terri