The coronavirus pandemic and struggling economy could not, according to the new report, hold a lid on Bay Area’s house prices, which set new records in 2020.
The average price for a single family in the Bay was $ 1.06 million in December, a slight decrease compared to November, but an increase of 16.4% over December 2019, according to a report by the California Association of Realtors announced this month. According to the report, sales have increased by 40.2% since 2019.
The average house price of San Mateo County rose from $ 1.65 million in November to $ 1.7 million in December, making it the most expensive county in the Bay Area to buy a home. Previously, San Francisco, with an average house price of $ 1.697 million in November, was the most expensive. But the city’s average house price fell slightly to $ 1.58 million by December.
San Mateo County also knocked San Francisco out of the summit in December 2019, the report showed. The average price that month was $ 1.475 million in San Mateo County and $ 1.45 million in San Francisco.
The median refers to the average price for all homes in a set, where half is sold for less and half for more.
The average house price in California reached a record $ 717,930 in December, an increase of 16.8% compared to December 2019. Active listings fell by 47.1% compared to 2019, a figure attributed to the report has to warn homeowners to sell during the pandemic. Along with low interest rates on mortgage lending, the decline in supply has helped raise prices, according to chief economist Jordan Levine of the Brokers Association.
“House prices, which usually peak during the summer, were unpleasantly strong in December,” he said in a news release accompanying the report. “The imbalance between supply and demand continues to fuel the price of homes, as prospective home sellers remain reluctant to list their homes during the pandemic.”
The 30-year fixed interest rate fell to 2.68% in December, from 3.72% last year, according to the report.
The association’s president, Dave Walsh, added that mortgage rates should remain low on mortgage rates until this year, which should keep the housing market strong.
“Home sales should increase in the first half of 2021 as motivated buyers take advantage of the increased purchasing power,” he said.
Susie Neilson is a staff writer for the San Francisco Chronicle. Email: [email protected] Twitter: @susieneilson
Here are the most recent median prices for single homes for each Bay Area province at the end of the year:
Alameda: $ 1.06 million
Contra Costa: $ 763,000
Marine: $ 1.46 million
Napa: $ 842,000
San Francisco: $ 1.58 million
San Mateo: $ 1.7 million
Santa Clara: $ 1.375 million
Solano: $ 510,000
Sonoma: $ 720,000