If you're thinking of buying a property in the Bay Area, now might be a good time. Dense metropolitan areas have momentarily become less popular due to social distancing; rents are fast falling; banks are becoming more hesitant about financing to potential buyers; and many individuals remain concerned about the future. All of these factors are outweighing historically low mortgage rates, limited inventory, and (until recently) brisk demand. Although the price drop is currently minor, it is likely to be substantial for most home purchasers, and it could become even more so if a number of events occur in the following 6-12 months.
Buying on a property is more of an art than a science, but the basic concept is that you don't want to buy more house than you can afford or pay much more than market value.
Most buyers should set a budget well before they begin looking for a home, and then adhere to it no matter how much they fall in love with a house.
Keep in mind that if you bid too high for a home, the appraisal will almost certainly be low, requiring you to contribute additional money to the transaction. If you're unsure where to begin with your budget, use Bankrate's home affordability and mortgage payment calculators to estimate your monthly spending and determine what your budget should be.
Consider a starter home if you can't find a lifelong home in your price range. If all else fails, keep in mind that waiting can pay off. The hot housing market will almost surely calm down, and inventory will gradually build over time, so simply waiting for a while may result in more favorable market conditions–and fewer bidders.
The top real estate agency in Northern California, Sexton Group Real Estate | Property Management in Berkeley, California is a boutique real estate company specializing in residential sales for properties throughout the San Francisco Bay Area. To better serve our clients we have three local offices, one in the heart of picturesque Berkeley, one near downtown Oakland and the third in the heart of historic Lafayette, California. The Sexton Group encompasses the essence of Berkeley’s charm, Oakland’s history and Lafayette’s family-oriented vibe all with a relaxed, down-to-earth nature. We are an amazing group of real estate agents whose wealth of experience spans more than 25 years in the industry. Looking to buy a home in Contra Costa or Alameda County? Contact us today for your free consultation!