Too many people, too little housing — why it’s a perfect time to buy or sell
Unless you live in a wooden shoe, you may have noticed the sharp increase in people, traffic, and development happening in the Bay Area. Perhaps the fact that we are the center of the tech world is to blame for the ever growing rate of tech hires, and people flooding the area. At any rate, it’s not hard to see that our bubble is bursting with the need for more housing and fast. Thousands of rental units have gone up in the past couple years, and there are thousands more in process. Because there is so much competition for housing, and people are making high salaries, monthly rental prices keep rising. It is rare to find an apartment that is rent controlled, as landlords are living the high life with a line of eager rental applicants willing to pay outrageous prices. While this may sound like a dreary outlook, it is actually a great time to buy or sell!
Beat the high rent and buy a home. Here is how you might benefit:
- Fixed Cost: When you buy a home (house, townhouse, apartment) in the Bay Area, your monthly mortgage is often less expensive than a monthly rental of a small apartment. For example, the average rent for a 2-bedroom apartment in Palo Alto is $3,957, which is equitable to a mortgage on a house. Yikes! (Source: https://www.rentometer.com/results/kkbKZVqo4LQ)
- Make an Investment: Instead of losing your paycheck to a rental, many are opting to buy.
Already a homeowner? It might be a great time to cash it all in:
- Higher Profits: Like we see with apartment rentals, there is a great amount of competition due to the limited amount of homes available. We have even seen many bidding wars for homes. Houses in the Bay Area can sell for 100,000 or even 300,000 above asking price, which for any level-headed person may seem cuckoo!
- Record Selling Time: High competition means buyers are very motivated and you can expect to sell your home quickly (depending on condition, price, and location).
So, whether you are a homeowner or a home buyer, it could be your time! Join the plentiful Bay Area. Find your place here today!