The coronavirus pandemic and the struggling economy have failed to contain house prices in the Bay Area, which reached new records in 2020, according to a new report.
The average price for a single-family home in the Bay Area was $ 1.06 million in December, a slight drop from November, but a 16.4% increase from December 2019, according to a report by California Association of Realtors released this month. Sales grew 40.2% in the region compared to 2019, according to the report.
The average price of a home in San Mateo County rose from $ 1.65 million in November to $ 1.7 million in December, making it the most expensive Bay Area county to buy a home in. Previously, San Francisco, with an average home price of $ 1.677 million in November, was the most expensive. But the average home price in the city declined slightly to $ 1.58 million in December.
San Mateo County also took San Francisco out of first position in December 2019, the report showed. The average price for that month was $ 1.475 million in San Mateo County and $ 1.45 million in San Francisco.
The median refers to the average price of all the houses in a set, where half sold for less and half for more.
The average home price in California in December reached a record high of $ 717,930, an increase of 16.8% over December 2019. Active listings fell 47.1% compared to 2019, a value the report attributed to the caution of homeowners in selling during the pandemic. Along with the low interest rates on mortgages, the reduction in supply helped to raise prices, according to chief economist at the association of realtors, Jordan Levine.
“House prices, which generally peak during the summer, were exceptionally high in December,” he said in a press release accompanying the report. “The imbalance between supply and demand continues to fuel price increases for homes, as potential sellers remain reluctant to list their homes during the pandemic.”
The fixed interest rate on 30-year mortgages dropped to 2.68% in December, from 3.72% last year, according to the report.
Association President Dave Walsh added that mortgage interest rates are expected to remain low this year, keeping the housing market strong.
“Home sales are expected to remain high in the first half of 2021, as motivated buyers take advantage of increased purchasing power,” he said.
Susie Neilson is a writer for the San Francisco Chronicle. Email: [email protected] Twitter: @susieneilson
Here are the most recent average prices for single-family homes for each Bay Area county at the end of the year:
Alameda: $ 1.06 million
Against Costa: $ 763,000
Marin: $ 1.46 million
Napa: $ 842,000
San Francisco: $ 1.58 million
San Mateo: $ 1.7 million
Santa Clara: $ 1.375 million
Solano: $ 510,000
Sonoma: $ 720,000