The Bay Area remains California’s most in-demand region for real estate even with affordability as a factor. San Francisco, followed by San Mateo, and Santa Clara counties, is the least affordable area in the state. According to the California Association of Realtors, the median home price of $1.37 million requires a minimum qualifying income of $276,380 annually. Not only that, nearly 85 percent of homes are selling above the asking price, and inventory levels remain low.
Who is Buying?
The National Association of REALTORS® recently published its 2017 NAR Home Buyer and Seller Generational Trends report. Just some of the interesting information from the findings:
- Millennials, age 36 and younger, are the largest group of homebuyers at 34 percent
- Gen Xers, ages 37-51, are 28 percent
- Younger boomers, ages 52-61, are 16 percent
- Older boomers, ages 62-70, are 14 percent
First time buyers made up 35 percent of all home buyers, an increase over last year’s near all-time low of 32 percent. Buyers 36 years and younger made up 66 percent of first-time buyers. At 34 percent, buyers 36 years and younger continue to be the largest generational group of home buyers with a median of 31 years old.
The Affordability Factor and Low Inventory
California’s housing affordability hit a 10-year low as tight housing inventory drove home prices higher and reduced purchasing power for homebuyers in the third quarter. If you are considering selling or buying, it is not a time to hesitate. — Anne Laury, Coldwell Banker Global Luxury International