Average home prices in Bay Area hit new highs, report says – NBC Bay Area

Real estate prices in the Bay Area just hit a new high.

Silicon Valley and San Mateo County are the first two counties in the United States where home prices exceed $2 million, according to the National Association of Realtors.

The news came as no surprise to the Bay East Association of Realtors, a group that monitors real estate prices and sales in the region.

“It's intriguing. It's interesting. It's going to make some headlines, but ultimately it comes down to location, location, location,” said David Stark of the Bay East Association of Realtors.

The Bay East Association of Realtors represents approximately 6,000 real estate professionals in California.

Stark told NBC Bay Area that buyers appear to have accepted current interest rates and are willing to make higher monthly mortgage payments.

“At the same time, we're seeing more supply coming onto the market, which tells us that sellers are willing to pay a little more than they're paying on their monthly mortgage payment. That's important because today's seller will be tomorrow's buyer,” he said.

San Jose is seeing some of the highest increases. According to the National Association of Realtors, San Jose home prices increased 11.6% in the third quarter of 2023. The median price for single-family homes is now $2,008,000.

After a slight decline, real estate prices in San Francisco also rose by 8.5% to $1.5 million.

According to Stark, it is clearly a matter of supply and demand.

“Buyers are willing to pay a premium. Our supply is still limited and if sales prices reach these record numbers, that is to be expected in an area where many people want to live,” he said.

While this news is causing groans among home buyers, there is also good news for home sellers. Stark said Bay Area residents can expect even bigger price increases if interest rates continue to fall in the coming weeks as expected.

Read the full report at nar.realtor.