In this article, I'll break down how I ran the numbers and decided that it was not financially worth it to buy a house in the Bay Area, in 2019. To understand the trade-offs between buying vs renting let's first set up the scenarios, such that the total amount spent for each scenario is identical.
Full Answer
What is the average home price in the Bay Area?
The median sale price for a Bay Area home last month was $1.27 million. The Bay Area housing market is distinguished by high demand, cheap mortgage rates, and a scarcity of available inventory. Due to increased demand from the state's high-income residents who can take advantage of low-interest mortgage rates, home prices are skyrocketing.
Is it hard to buy a house in the Bay Area?
While the Bay Area has a lot to offer homebuyers - great jobs, vibrant metro area, and historic cultural landmarks - flexible housing prices are something that this area lacks. For first-time homebuyers and repeat homebuyers alike, it can be difficult to navigate.
Is the Bay Area a buyer's or seller's market?
Much of the Bay Area real estate market remains firmly in “seller's market” territory with months of supply of available single-family homes being less than six weeks at the current pace of sales.
Is the Bay area housing market cooling down?
The Bay Area housing market is distinguished by high demand, cheap mortgage rates, and a scarcity of available inventory. Due to increased demand from the state's high-income residents who can take advantage of low-interest mortgage rates, home prices are skyrocketing. Is the housing market in the Bay Area cooling? No, most likely not.
