Regardless of which housing market you are looking to buy a home in, you should always make some considerations regarding timing. This is because of pricing trends, meaning that there may be certain times of the year where the markets favor the buyer.
This could be for a number of reasons, such as seasonal conditions, demand and supply, the strength of the local job market, and interest rates.
Here we take a look at the best time of the year to buy a home in the Bay Area, by looking at whether any notable trends exist.
Best Time of Year to Buy in the Bay Area
Firstly, it is important to note that in the wider San Francisco, median home values are beginning to stagnate. Prices rose by just 4.2% over the previous 12 months, in comparison to the national average of 7.2%.
The San Francisco housing market is also expected to slow further in the next 12 months, with appreciation growing at just 2.9%. What this means for you as a buyer is that the markets are potentially in your favor.
At a local level, median home values in the Bay Area dropped 2% in December 2018, in comparison to the previous year. The same publication presented a further surprise, as inventory levels have increased quite significantly in the Bay Area.
Prolonged appreciation growth in the Bay Area typically resulted in a low supply of available houses, however, inventory levels rose by 31% in December 2018. This once again supports the idea that the Bay Area and wider San Francisco housing markets are now in favor of you as the buyer.
In terms of seasonal timing, you might be wise to begin the Bay Area buying process as fall approaches. This is because the local housing market usually begins to attract buyers around May, as families want to move into a property well before the new school year starts. The summer months also presents weather that is conducive for viewings.
This means that as buyer demand increases, as do the prices. If you're looking to have more leeway in terms of negotiation, then buying throughout the fall or winter months may allow you to obtain a better deal.
Ultimately, with inventory levels rising and median home values falling in the Bay Area, now is a good a time as any to think about entering the market. Your best bet is to get in touch with an experienced real estate agent that knows the Bay Area well, as they'll be able to give you a comprehensive breakdown of when to time the market.
The Best Places to Buy a Home in the Bay Area
West Menlo Park: With a local population that falls just shy of 4,000 people, West Menlo Park is packed with urban amenities. Whether it's coffee shops, restaurants, or parks, you're only a stone's throw away from convenient spots. Public schools within the area are also highly rated.
Loyola: If budget is not an immediate concern of yours, then Loyola is one of the best locations to buy a home in the Bay Area. Unemployment rates are super low at just 2.6%, and the median income surpasses $210,000. With a median home value of $3.6 million and a cost of living that is more than 500% higher than the national average, living in Loyola isn't cheap.
Contra Costa County: If you're at the other end of the pricing spectrum, then you should consider Contra Costa County. This particular segment of the Bay Area is much cheaper than the wider San Francisco-Oakland-Hayward Metro area. Median home values amount to approximately $621,700, which works out at $381 per square foot.
Marina: Buying a house in Marina offers the rare opportunity for lower median home values and above-average appreciation growth. With median values at $576,400, this is one of the cheapest locations to buy a home in the Bay Area. Values grew by 8.6% last year, which outgrew the national average.
Solano County: Although appreciation levels are only expected to grow by 4.3% over the next 12 months, Solano is still expected to outgrow the wider California state. With median property prices of $440,100, Solano offers lower-budget buyers a realizable opportunity to move to the Bay Area.
4 Ways to Get a Great Deal On a Home in the Bay Area
1. Find a Great Bay Area Real Estate Agent
Your first port of call should be to find an experienced real estate agent that has extensive knowledge of the Bay Area housing market. They'll be able to guide you through the entire buying process and advise you on some of the most notable pricing trends in the local area.
A Bay Area real estate agent will also be able to provide you with a comprehensive overview of what your best financing options area, including any first-time or low-income buyer programs that you qualify for.
Read more: What can a real estate agent do for you as the buyer?
2. Assess Your Needs and Lay Out Your Goals:
Before you start the buying process, it is important that you first outline your specific goals. This should include the type of area you want to live in, what your budget range is, and whether you need to be within distance to public transport links.
Read more: What should I look for when buying a house?
3. Find a Lender and Secure Financing:
If you're looking to buy a house on finance, your Bay Area real estate agent will be able to advise you on any programs you might be eligible for. This could include a favorable mortgage plan, and assistance with additional financial roadblocks such as down payments and closing costs.
Properties in the U.S. average a 30 day closing time from the moment an offer is accepted, so it's crucial that you have all of the required financing arranged as soon as possible.
Read more: The step-by-step home loan process.
4. Negotiate for the Best Possible Price:
As the Bay Area housing market appears to be moving in favor of the buyer, you might be able to negotiate a better price on your desired property. You'll be able to further increase your odds of negotiating a better price if you time the market well.
Clever can connect you with a top-notch real estate agent that has extensive experience of negotiating deals in the Bay Area. Working with a Clever Partner Agent could also make you eligible for our buyer rebate program. For more information on how Clever can help, simply fill in our online form and we'll get back to you!