'Stable, Moderate' Bay Area Housing Market Predicted: Report

BAY AREA, CA – The Bay Area housing market, which has been red-hot for at least five years, will experience more of a stable, moderate period of supply and demand this year, a national real estate research firm predicted.

Total new home inventory in the Bay Area increased in 2017 by 13 percent, according to Metrostudy, a Houston-based real estate data service. This number applies to newly built homes, not resale homes.

While the number of new homes for sale increased, prices also went up, and the overall cost of homeownership outpaced household income growth in most areas, according to Metrostudy.

With prices at or above peak pricing in most sub-markets, buyers may begin to rethink their homebuying decisions and decide to rent or move out of the area, Metrostudy said.

Given these factors, the data service is predicting that the Bay Area housing market will have more of a stable, moderate period of supply and demand into 2018 as the economy continues to settle and the market reacts to
the rapid increase in home prices, Metrostudy said.

The data service predicted that east Contra Costa County, Solano County, Sacramento and Stockton will likely benefit from the expanding Bay Area economy, as homebuyers look for more affordable homes outside the core Bay Area.

By Bay City News Service / Image via Shutterstock