How to Find a Home in the Bay Area, When Inventory Is Tight

Name: Bridgepoint Funding, Inc.
Price range: $$$

June 8, 2021
Mike Trejo
Home Buying

It can be hard to find a home to buy in the San Francisco Bay Area. This is especially true in 2021, when housing market inventory has declined to an all-time low. But have faith. You can improve your chances of finding a home in the Bay Area by following the strategies outlined below.

How to Find a Home in the Bay Area: 2021 Edition

According to a May 2021 from the California Association of Realtors, the “unsold inventory Index” for the Bay Area was down to just 1.3 months of supply. That was a decrease from 2.9 months of supply a year earlier. These numbers reinforce something we already knew. It’s a tight real estate market.

Even so, there are things you can do to improve your chance of success. Here are five strategies that might make it easier to find a home in the Bay Area in 2021, or later in 2022.

1. Expand your research area.

If you’re like many home buyers, you probably already have a certain neighborhood in mind where you want to buy a home. But due to the current nature of the real estate market, you might not find a suitable property in your first-choice area.

By expanding your search to surrounding communities, you can increase your chance of finding a home in the Bay Area. You might even boost your purchasing power in the process.

As of summer 2021, housing market supply remains low across the entire San Francisco Bay area. But some cities and communities have more properties available, when compared to others. Be open-minded when it comes to your chosen location. Geographical flexibility can make it easier to find a home in the Bay Area.

2. Get a real estate agent on your side.

Having an experienced agent on your side can help you in many ways. A Bay Area real estate agent can help you determine the best neighborhood or community that suits your needs. He or she can also help you find a home that falls within your budget in your chosen area.

What many buyers don’t realize is that some properties don’t even make it onto the big listings websites. Some homes are listed and sold through word-of-mouth and networking. By working with a local real estate agent, you can improve your chance of finding a home to buy in the Bay Area.

3. Shorten your wish list.

Entering the real estate market at a time like this can be a harsh reality check for some home buyers. Inventory levels have never been as low as they are right now, as of 2021. So there’s a good chance you might not check all of the boxes on your wishlist when shopping for a home in the Bay Area.

In fact, it might help to think of it as more of a “need list” than a wishlist.

What are the things you absolutely need to have in a house? The things you just can’t do without? Those should be your top house-hunting priorities. Everything else falls into the “I can do without it” category.

You can make it easier to find a home in the Bay Area by shortening your wishlist and separating needs versus wants. The shorter your list of needs, the easier it will be to find a home to buy. A longer list, on the other hand, could prolong your house-hunting process and lead to frustration.

4. Use listing websites to research inventory in different markets.

Real estate listing websites like Realtor.com and Zillow can be helpful research tools. Among other things, you can use them to determine how many homes are available within your chosen area and price range. Just enter your chosen location, your price range and other parameters, and you can see how many homes are on the market.

This is a great way to compare inventory from one area to the next. If your first-choice location has few properties available within your parameters, you might have to broaden your search. You might find that your second or third-choice location has a lot more properties that meet your specifications.

This kind of market research can save you time and frustration down the road, while making it easier to find a home in the Bay Area.

5. Make an attractive offer with fewer contingencies.

A housing market trend we’ve noticed lately is that some home buyers are waiving their contingencies in order to compete. Low supply levels and strong demand have made the Bay Area real estate market highly competitive. As a result, buyers often find that they have to go “above and beyond” to give the seller’s attention.

In many cases, this means waiting contingencies such as the home appraisal and inspection. It’s your call as to whether you want to go that route. Just know that it is a common strategy in the current market. Talk to your real estate agent about these tactics, and make sure you understand the repercussions.

You also want to make a strong offer when the right house comes along. It’s hard enough to find a home in the San Francisco Bay Area, given the current inventory shortage. The last thing you want to do is derail the process by making a weak offer that gets overshadowed by other buyers.

In a seller’s market, it’s generally unwise for buyers to nitpick or “nickel and dime” with the seller. You want to present your best offer right out of the gate, so the house doesn’t slip through your fingers.

So there you have them, five tips and strategies to help you find a home to buy in the Bay Area. Research the market. Be open-minded with your needs versus wants. Expand your search area to surrounding communities. Get a real estate agent on your side. And make a strong offer when the right home comes along.