2021 Looking Good for Hot San Francisco North Bay Residential Real Estate Market
The North Bay residential real estate market boasts record-low interest rates, low inventory, and more millennials entering home ownership.
As reported in The North Bay Business Journal, the median price for a single-family home in Marin County has increased to $1.45 million at the end of 2020, which is up by over $30,000 in one month and more than $100,000 in comparison to 2019’s $1.31 million, according to listing service data gathered by the California and North Bay associations of Realtors.
For the last few years, the San Francisco Bay Area real estate market has been climbing at record pace in recently suburban areas that offer more space for a remote office, real estate economists and agents say.
Sonoma County’s median of $720,000 went up by $5,000 between November and December and marked an 8% increase between 2020 and 2019. This is the highest exponential growth since the decade ending in 2000 recorded a substantial increase of 27%.
The North Bay Association of Realtors recently reported that Napa County real estate has gone up, with median prices at $842,000 last December, up $18,000 in one month.
Houses selling for over $2 million demonstrated robust growth, up 60% in the North Bay.
“As we look back on 2020, there was a seismic shift in choices people were making on where they wanted to live,” said Healdsburg Compass real estate agent Carol Lexa, who is also the North Bay Association of Realtors past president. “Move-in ready homes sell the fastest.”
Halfway into 2020, Lexa noticed that more San Francisco and San Jose residents opted out of the metro areas to live in the Wine country.
“The pandemic drove people north because there’s more space and access to natural environments, which are so easy to get to here,” Lexa said.
Pools also became more popular for gathering at home so if the home doesn’t come with one, the buyer would have one installed.
Matt Perez Chica, who operates the Windsor pool contractor, said his business is booked for this year’s building season that runs between April and October and he’s now scheduling into 2022.
“People are moving to Sonoma County. Dot comers want to get out of the South Bay, and they’re nesting,” he said.
According to BAREIS data, total sales volume for its piece of Wine Country exceeded $6 billion.
In addition, 6,443 single-family homes and condominiums closed in Wine Country last year, which is almost 600 more than the previous year.
“And we probably will have another two years of this,” said Erin George, who works out of the Sotheby’s Sonoma office and serves as the incoming North Bay Association of Realtors president.
Many have saved money they would have spent on vacation on housing instead, despite a pandemic that has created double-digit unemployment.
“Home prices, which usually peak during the summer, were unseasonably strong in December,” California Association of Realtors Vice President and Chief Economist Jordan Levine said in a statement.
Another expert said historically low interest rates have allowed homeowners to spend less on their mortgages.
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