How the Bay Area Job Market is Driving Real Estate
Whenever there is a vibrant job market, there is a vibrant real estate market. In the East Bay alone, from Pleasanton to Orinda, we have 77,000 people that go to work everyday at Bishop Ranch, Hacienda Business Park, the Financial District in Walnut Creek, etc. This healthy job market is key to our vibrant real estate market.
When we look at the Bay Area, the opportunity in the Peninsula is unbelievable. Out in the Silicon Valley, it’s about jobs, it’s about thriving businesses, and it’s the same in San Francisco. In fact, you have many companies in the Silicon Valley that have moved their headquarter to San Francisco.
The Strength of the Economy
The economy of the San Francisco Bay Area is a little tiny island within the United States — yet it’s powerful. So when someone asks me, “what is happening in the real estate market?” My answer is, “tell me the neighborhood, tell me the street, and I will tell you about the market.” It is different all around the Bay Area. From Noe Valley, San Mateo, Palo Alto, Danville, Orinda, Pleasanton, each market is unique– but it’s still very vibrant no matter where you go.
It’s a Seller’s Market
We have had a seller’s market since January 2013. So we are within the 22 – 23 month of it being a seller’s market. It did change in May. In May, we ended up having a slow down. Instead of a home being 7 – 10 days on the market, it went up to 21- 22 days on the market. But even with the slow down, it is still a very vibrant seller’s market.
Low Inventory Affecting the Market
We are experiencing very low inventory throughout the entire San Francisco Bay Area. When driving across the Bay Bridge, you can see all the cranes that are building high rise living structures. People think these buildings are for sale- they are 100% for rent! There is almost no new construction in San Francisco. Hedge funds and reits have bought these projects and are building 30 and 40 story rentals — because they want rentals.
Out in the East Bay, South Bay, Peninsula, Marin Country– there is almost no significant new home building. One issue of low inventory is that we have had no support from the new home building industry. They have been backing off since 2007 – 2008. So our population is growing, but the new homes that are typically developed to accommodate this growth- have not been built. As a result, we mostly have re-sells available for buyers to consider.
Summary
Overall, the Bay Area is its own micro-economy. It is leading the way in the United States in terms of the housing industry. We have had a 35% – 40% increase in prices in the last 22 months, and we suspect there will be a 6% rise in 2015. By December 2017, the prediction is that there will be a total appreciation of about 19%
To learn about the real estate market in specific Bay Area neighborhoods, contact me anytime at:
Jim Walberg
925-260-8800
jim@jimwalberg.com
http://www.thebayareateam.com
*MARKET UPDATE – 11/7/14*
After the Pacific Union Real Estate economic forum held November 6th, 2014 in San Francisco, I want to revise my appreciation predictions for the next three years to either side of 5% instead of 19%. We have reached the peak of this two year appreciation run, so if sellers are sitting on the sidelines hoping for more, it is time to get their homes on the market now! For more information contact me today!
Jim has been a member of the East Bay business community since 1970. He has lived in Danville since 1973 which has allowed him to participate in the responsible development of this lovely region of the Bay Area. Jim is a member of the Contra Costa Association of Realtors, the State and National Association of Realtors, and a member of the Realtors Marketing Association since 1990.Within his professional community he has been the president of the Realtors Marketing Association, Realtor of the Year, inducted into the Realtor's Hall of Fame for the East Bay, and is ranked in the top 1% of Realtors nationally. He was selected to a member of Who's Who In Luxury Real Estate, and the International Real Estate Federation based in Geneva, Switzerland. Jim is also a certified Luxury International Real Estate Specialist.
He has is a sought after featured speaker at real estate conferences from Paris, France to Washington, D.C. on the topics of effective internet marketing strategies for real estate.He was awarded the 2009 Top Global Networking Award from Who's Who In Luxury Real Estate out of 120,000 member Realtors from 68 countries.
Giving back to the community in which Jim lives and works is a key part of his weekly business plan.He has a commitment to serving the needs of our local and international community. As a long time Rotarian and past president of Rotary,he is able to also serve the needs of those less fortunate around the world. Because of his focus on "Service Above Self" he was awarded the Keller Williams Realty International "Realtor Inspirational Award" for Northern California in 2007 and 2009.
Some of his interests are sailing and traveling in tropical regions of the world, collecting fine wines, reading, stream fishing for trout, skiing, and tending his rose garden. However, the most important part of his life is his personal faith, his loving wife and business partner - Ann Marie,and their wonderful kids Matt, JJ and Bryana.
- Coming Soon| 255 Viewpoint Dr, Danville CA - June 17, 2015
- What’s Happening in the Bay Area Real Estate Market? - November 6, 2014
- Coming Soon | 210 Promenade Lane, Danville - October 31, 2014
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