The California Association of Realtors reports that 420,100 single-family homes were sold in January, up 4.4 percent from January 2016. Analysts agreed that the the prospect of ever-increasing interest rates motivated many buyers to act.
Once again affordability reminds a problem in the Bay Area. In addition to higher mortgage rates, continued price appreciation without sufficient wage growth will push many would-be homebuyers to turn to inland, more affordable areas.
The good news is that more homes hit the market in the Bay Area in January with most counties now sporting a 2 to 2.5 month supply.