The real estate market in the Bay Area and Peninsula is characterized by high demand and limited supply, driving prices to some of the highest in the country. This analysis will focus on the availability of single-family residences and condominiums, along with the financial market trends influencing them.

Single-Family Residences:

The availability of single-family residences in the Bay Area and Peninsula remains constrained. Urban growth boundaries, strict zoning regulations, and limited space for new construction contribute to the scarcity. Many existing homes are older and may require renovation, adding another layer of complexity for buyers. Additionally, the COVID-19 pandemic spurred a trend of people seeking more space, further intensifying demand for single-family homes.

The median sales price for single-family homes has steadily increased over the past few years, often surpassing the million-dollar mark. Despite the pandemic, prices have remained robust, driven by low inventory and high demand from tech professionals and other high-income earners. The competition is fierce, often resulting in bidding wars and properties selling above the asking price.

Condominiums:

Condominiums offer a more affordable entry point into the Bay Area/Peninsula market compared to single-family homes. However, availability is still limited, particularly in desirable neighborhoods closer to tech hubs and urban centers. High-rise condos in areas like San Francisco and Palo Alto offer luxury living but come with a premium price tag.

While demand for condos softened slightly during the pandemic due to remote work trends, it has rebounded as the economy reopened. Condos appeal to young professionals, empty nesters, and investors looking for rental income. However, inventory remains tight, leading to competitive bidding and upward pressure on prices.”