Bay Area home prices stay high, demand dips

BURLINGAME, Calif. (KRON) — There is indications the Bay Area real estate market is slowing down.

However, the demand for new homes remains high.

This past February home sales slowed down in comparison to the last year, but, with interest rates expected to rise over the course of the next year, people are rushing to buy homes and lock in a low rate so home prices will probably remain high.

“With low inventory we are seeing sky high prices going even higher,” mortgage broker Joey Olivia said.

Oliva works with Marshall Inc. in Burlingame.  He says that right now, in Burlingame, there are only around 11 homes for sale and far more people looking to buy.

Many of them looking with a sense of purpose, trying to beat the clock.

“The trend for buyers right now is low inventory, with the impending rising rates is making people want to get into this market prior to the rates rising,” Olivia said.

Houses that are coming onto the market are not lasting long.

“Everywhere from 4 days to a week,” he said. “Depends on the seller if they want to wait for an open house. the top possible prices are coming in right away and people are paying top dollar.”

Olivia does believe that rising interest will have an impact on the market despite real estate predictions being difficult.

“As rates rise a lot of people will probably just get out of the game,” Olivia said. “Maybe we will have buyers who stay in the game and there’s less competition perhaps. I don’t know. There is still significantly low inventory here along the peninsula.”

In Spring, more homes come on the market which could give buyers more options. However prices are still expected to remain high.