As if having first time homebuyers and investors is not enough to to heat up the San Francisco/Bay Area home buyers market, the continuing hike in rental rates combined with the soft home prices continues to pull once reluctant apartment dwellers to take the plunge into the purchase mode.
In the Bay Area, we have seen increased buying activity from investors and second-home purchasers but we hear of a rising number of tenants, tired of paying increasing rents, have talked with several are also factors behind the recent pickup in home sales, real-estate agents say they are fielding more calls from anxious tenants complaining about rising rents
The largest rent increases came in San Francisco and San Jose, which saw increases of 5.9% and 4.9%, respectively.
Down in San Jose and Silicon Valley, where home prices have plummeted 36% from the mid-2007 peak, home affordability has more than doubled in the last five years.
Those who want to buy a home in this market might have to act like Jumpin’ Jack Flash to get their offer accepted.