Oakland’s housing market tops Bay Area for overbidding

Oakland’s housing market is on a tear, given its proximity to San Francisco and its affordable real estate, relatively speaking.

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Despite Rising Prices, Most Economists Still Say No
Source: Wall St. Journal
The relentless rise in housing prices has led many economists to question whether another housing bubble is forming. Housing prices have been climbing for 35 consecutive months, according to the latest S&P/Case-Shiller Home Price Index. However, while prices keep rising, the rate of growth has slowed, thereby giving economists reason to believe a bubble is not a concern. Also, far fewer new homes are being built than a decade ago, so oversupply will not be an issue related to a price bubble.
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More homes have sold for $1 million or above in San Francisco this year than in any other city in the United States, according to real estate website Redfin’s latest luxury housing report. San Francisco has had 782 sales break the seven-figure mark so far this year, a number that is 16 percent above the figure from the same time last year and more than double 2011’s number. Although San Francisco came out on top, Oakland showed one of the biggest surges in seven-figure sales this year.

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To view all the $1 Mil. homes that have sold in the last 3 months in Oakland Click Here to View Listings

This is an excerpt about an article in the SJ Mercury News.
You can read the whole story here: http://www.mercurynews.com/business/ci_26850350/modest-bay-area-homes-hit-mind-boggling-prices

Modest Bay Area homes hit mind-boggling prices
By Pete Carey

…In the East Bay, neighborhoods close to amenities like Berkeley’s “Gourmet Ghetto” or Oakland’s Rockridge have seen big appreciation over the past two years. The median price of houses in tiny Emeryville, just minutes from the Bay Bridge, has more than doubled in the past two years, according to CoreLogic DataQuick.

“We had one just last week that went $500,000 over asking,” said Philip Weingrow of Alain Pinel in Oakland. The house is in coveted Rockridge.

“It’s a nice house, but the underlying cause is very, very tight inventory and an awful lot of people coming into our area from San Francisco, where they are priced out because they have a mere $2 million to spend. That can buy you an awful lot more home in Oakland and Berkeley.”

A house in the Oakland hills sold this summer for $839,000, or $280,000 over the asking price, according to data gathered by real estate firm Pacific Union. That was $730 a square foot in a ZIP code where the median price per square foot was only $457 in the second quarter. And a 940-square-foot, two-bedroom, one-bath home built in 1925 in Oakland’s Fruitvale district sold in October for $700,000 — $141,000 over the asking price and $744 per square foot.

Just off popular Solano Avenue in Berkeley, a small house on a cul-de-sac sold for $1.1 million in September, or $331,000 over asking price. On the flatlands of West Berkeley, a 1,300-square-foot home on a tiny lot fetched $905,000 this summer, almost $700 a square foot.

But Glen Bell with Better Homes and Gardens in Berkeley believes that the market will cool off for a while in most parts of the East Bay. “There has started to be some resistance from buyers on going any higher,” Bell said. “Some areas are still going to get multiple offers over asking price, but the number of multiple offers is lower.”