It’s a seller’s market again as prices surge across Bay Area and supply dwindles

The housing crunch in the Bay Area is intensifying, after new listings for homes plunged 12 percent from the same period last year and the median home price climbed into double digit increases year over year.

The data come from a new report from the California Association of Realtorsreleased this week. It shows home prices climbing across the entire Bay Area, as well as the rest of the state, as more people look for housing in places with limited housing supply.

“Sales of single-family homes rose 6.9 percent year-over-year in California; in the nine-county Bay Area, the increase was 6.4 percent. Statewide, the median price rose 6.8 percent to $517,020, while the Bay Area median rose a whopping 10.1 percent to $837,720,” the Mercury News reports.

“In Contra Costa County, sales grew by 11.2 percent and the median climbed 6.6 percent to $585,000. In Alameda County, sales were up 5.5 percent and the median jumped 10.0 percent to $833,750,” the paper reports. “These are the numbers for San Francisco: Sales up 12.6 percent, but the median price down a smidgen (-0.4 percent) to $1,350,000.”

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Market watchers warned that while those numbers are great for sellers and Realtors, they will continue to worsen the region’s housing crisis and pinch buyers. Higher interest rates could also put a squeeze on the area’s long-term growth.

“[Spring is] off to a good start, as the economic and market fundamentals remain solid for the most part,” Leslie Appleton-Young, C.A.R.’s senior vice president and chief economist, told the paper.

“However, higher interest rates, a dearth of housing inventory, and slow wage growth will continue to have an adverse effect on housing affordability that is putting upward pressure on home prices, and is sure to hamper the market throughout the year.”

You can read C.A.R.’s full report here, with a county by county breakdown.