Interest rates

Despite rising interest rates, the Bay Area’s boiling housing market has yet to cool – CBS San Francisco

DUBLIN (KPIX 5) – As interest rates climb, many thought this would mean some potential buyers would back off. So far, that doesn’t seem to be the case in the hot Bay Area market.

March was another banner month for real estate in California and the Bay Area. The median price for single-family homes in California in March was $849,080, according to the California Association of Realtors.

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Here are the median sales prices for single-family homes in the nine Bay Area counties:
• Alameda: $1,430,000
• Backside: $965,900
• Marine: $1,737,500
• Napa: $998,000
• San Francisco: $2,060,000
• San Mateo: $2,280,000
• Santa Clara: $1,950,000
• Sonoma: $833,750
• Solano: $604,000

“The headlines are screaming historically high sale prices. The fine print is people still want to buy homes,” said David Stark of the Bay East Association of Realtors. “If you look at how long a house has been on the market, it’s at historic lows, which tells us that buyers are not only willing to pay those prices, but they’re willing to pay those price quickly.”

Mortgage interest rates are rising. However, this phenomenon does not seem to have had an effect on the market yet, according to John Levine, vice president and chief economist of the California Association of Realtors.

“Even though rates have really gone up over the last eight weeks or so, we haven’t seen that affect buyer demand for a number of reasons,” Levine told KPIX 5. “But at the end of the day, we still have ultimately too many buyers and not enough houses to house them, this keeps the market relatively strong.

In March, for the first time in about two years, the stock of available homes did not decrease, according to the latest figures.

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“It’s significant that we have more for the first time in a very long time. We still have a long way to go to get back to something that feels normal,” Levine said. “But, I think for buyers in particular who really want to go ahead with these trades and get in when things were good so to speak with rates, that’s good news in the sense that they might have a few more options in motion. before.”

Bay East president and realtor Sheila Cunha told KPIX 5 that while the market is still “crazy,” it is not as crazy as it was a few months ago.

“We don’t see as many offers right now as we did four or five months ago,” she said.

Cunha thinks rising interest rates will eventually cause some potential buyers to back off, but doesn’t think that will happen until the summer.

“I think it’s coming. I think as the Fed continues to raise interest rates, buyers will no longer be able to afford what they once could,” she said.

As for inventory, she thinks it will slowly start to increase as well.

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“Spring is usually our busiest season,” she said. “I think we’re going to start seeing more homes coming to market.”