Will Houses in the Bay Area Become More Affordable in 2020?
The short answer is no. Despite optimistic suggestions, the reality remains that housing affordability in the Bay Area will likely not improve significantly in the coming year.
Exploring Affordable Options
Those looking to find more affordable housing options may consider locating in the exurbs. For instance, purchasing a lot in a cheaper area like outside of Pinole, Richmond, or Vallejo could provide a more economical solution. A lot in these areas can be acquired for around $100,000, which pales in comparison to the cost of a home in the Bay Area.
One promising area is East Napa County, near Lake Berryessa. The countryside there is picturesque, making it an appealing option for those seeking a serene living environment. Building a home there could offer substantial savings compared to traditional Bay Area properties.
No Buying Advice for the Bay Area
However, any advice to buy a house in the Bay Area would be ill-advised due to the expected price crash. Investors and homebuyers should brace themselves for significant drops in housing values. The market is heavily saturated, particularly for high-end properties, leading to a potential surplus that could result in lower valuations.
Current Market Trends and Projections
While it seems that prices are starting to level off, the surge in new construction has not yet met the full demand. The high-end properties are being snapped up by the wealthier homeowners, leaving the middle and lower-income earners further marginalized.
The influx of supply suggests that prices for high-end properties might decrease, but the entry-level and middle-tier markets remain tight. As a result, affordability for most potential homebuyers might remain elusive in 2020 and beyond.
Future Outlook and Recommendations
Given the current market dynamics, it's crucial for homebuyers to carefully consider their options before making a significant investment. Exploring the exurbs offers a viable path for those seeking a more affordable housing market. However, the broader Bay Area market is likely to continue experiencing volatility, making it a challenging environment for those seeking stable and affordable housing.
For those interested in long-term investment and planning, monitoring market trends and considering areas outside the immediate Bay Area might be the best strategy. The key is to stay informed and adapt to the changing real estate landscape.