Buying a Home in the East Bay in 2021: Three Things to Know

Do you plan to buy a home in the East Bay part of the San Francisco Bay Area, sometime during 2021? If so, you’ll find this report helpful. It covers three of the most important trends you should know about, when buying a home in this hot real estate scene.

Buying a Home in the East Bay: 3 Things to Know in 2021

The East Bay housing market is highly competitive in early 2021, just as it was throughout the most of 2020. A lopsided supply-and-demand predicament has home buyers in the area competing fiercely for a limited number of properties.

But that’s just one of the things you should know. Here is an updated look at these and other trends that could affect you when buying a home in the East Bay in 2021.

1. Low inventory conditions persist in 2021.

One of the first things you might notice as you attempt to buy a home in East Bay is the inventory situation.

Throughout 2020, most of the Bay Area real estate market experienced chronically low levels of housing supply. In other words, there weren’t enough homes on the market to satisfy the demand from buyers. And those conditions still persist today.

According to a February 2021 housing market update from the California Association of Realtors (C.A.R.), the East Bay counties of Alameda and Contra Costa had very low inventory levels at the start of 2021:

• In Alameda County, the “unsold inventory Index” was down to 1.3 in January 2021. A year earlier, that inventory index was at 2.0 (and even that was considered low by normal standards).
• Contra Costa County had similar numbers, with an unsold inventory index of 1.4 as of January 2021.

These numbers mean that there is still a very low level of supply within the local housing market. So buyers beware.

This is arguably the most important trend you should know about when buying a home in the East Bay Area. The current supply shortage could affect your house-hunting process as well as the amount you offer on a home.

In 2021, the supply-and-demand situation within the East Bay real estate market makes things highly competitive among buyers. It’s also a contributing factor to the rising house values we will talk about under point #3 below.

2. Homes are selling quickly across the East Bay region.

Anyone planning to buy a home in the East Bay in 2021 should be prepared to move quickly. Properties listed for sale in the area have been selling much faster than the national average. This was true throughout 2020, and it remains a factor today as well.

According to the C.A.R. report mentioned above, homes listed for sale within the East Bay housing market are selling quickly:

In Alameda County, the median time on market was down to just nine days in January 2021. That was a significant decline from a year earlier, when the median number of “days on market” was 20. Contra Costa County had similar numbers.

Here’s what home buyers should know: The entire East Bay real estate market has essentially “accelerated” over the past year or so. The numbers cited above tell us that homes are selling more quickly today than they were a year ago. And it has a lot to do with the tight inventory conditions mentioned under point #1 above.

In 2021, buying a home in the East Bay requires swiftness. Before entering the housing market, buyers should have their financing lined up and a budget in mind. This will enable them to make a quick offer when the right property comes along.

3. Prices will likely continue to climb throughout 2021.

Home-price trends are another important factor to consider, if you are planning to buy a home in the East Bay during 2021. And these trends can be summed up with a single word – upward.

Over the past year, house values have risen significantly in most cities across the San Francisco Bay area. The East Bay counties of Alameda and Contra Costa, in particular, have experienced major price growth in the past year or so:

• In February, C.A.R. reported that the median sales price for existing single-family homes within Alameda County rose 21% from January 2020 to January 2021. (Read our recent housing market update for Alameda.)
• Contra Costa County experienced even bigger gains, with its median sale price rising by nearly 25% during that 12-month period. That was one of the biggest gains among all of California’s counties.

According to the real estate data company Zillow, the median home value in Alameda County was around $961,000 as of March 2021. The median price point within the county is rapidly approaching $1 million and will probably cross that threshold later this year. The median home value for neighboring Contra Costa County was around $775,000, as of March.

The bottom line here, for those planning to buy a home in the East Bay, is that prices continue to climb. As a result, those who postpone their purchases until later in 2021 could encounter higher housing costs. So an argument could be made for buying sooner rather than later.

So there you have them, three of the most important trends for anyone buying a home in the East Bay during 2021. Inventory remains tight, properties are selling quickly, and prices will most likely continue to climb for the foreseeable future. You are now up to speed on current market trends!

Need a loan? Located in Walnut Creek, Bridgepoint Funding has been meeting the mortgage needs of East Bay home buyers and homeowners for nearly 20 years. We offer a wide range of financing products including FHA, VA and conventional loans. Please contact us if you have mortgage-related questions or would like to start the application process.