I get that question at least once or twice every single open house. Short answer is I don’t think so. The longer answer is always a little more complex. No, we aren’t in for another housing collapse but we are headed straight for another housing crisis…or as one editorial put it: “housing catastrophe.”
It is possible – especially here in the Bay Area where there are myriad high paying jobs in a variety of professions – that home prices will continue to rise. It is possible that agents…good agents…in an attempt to win every possible advantage for their client will continue to write offers without appraisal contingencies or without inspection contingencies. It is possible that we will continue to see 8-10 offers on beautiful homes under $400,000 until there are no more homes under $400,000.
The money and solid loans are there for the market to continue to shoulder the craziness that is this year’s spring market…but in no way, shape, or form is this a healthy market. American Canyon home prices were up 17% year-over-year. It is on the slow march to pre-recession prices.
The Vallejo real estate market is also on the rise. Realtor.com has it as the hottest market in the country for the 4th month in a row. It deserves it too! Vallejo is slowly re-imagining itself with it’s second Friday art walk and as a foodie’s delight with pop-up dinners on the second Saturday of every month(expect for this one, of course).
So no, I don’t think that we’re in a bubble but there are real concerns about the price of housing. Individuals whose families have lived in the American Canyon-Vallejo area for generations can no longer afford to live here. It says as much about stagnant wages as it does about desirability of the area. My sincere hope is that housing prices even out so that we can keep a diversity of families in the area.