As one Realtor put it, “If the stock market is like a jet skier on a triple espresso, the real estate market is like a giant cargo ship that decelerates and turns slowly.”
This is what we are seeing in the Bay Area as mortgage rates increase and inflation is climbing. Because of the sharp turn in the market, it is better to consider a three-month average than a single month’s data. The following data gives the Bay Area market results in each county for April, May, June:
Q2 2022 Medium Sales Price:
San Mateo: $2,200,000
San Francisco: $2,000,000
Santa Clara: $1,880,000
Santa Cruz: $1,350,000
Contra Costa: $975,000
With numbers like this, Bay Area properties are not likely to plunge into severe depreciation any time soon. Real estate continues to be the most stable of all investments according to the economists. Relax, no need to panic. This is just a part of the natural real estate market cycle we have experienced time and again.
Give Sun Pacific Mortgage a call at 707-523-2099 if you need a fast, Private Money loan or you are an Investor looking to maximize your returns, through Trust Deed investments.