Linnettte Edwards in SF Business Times on the influx of OpenAI buyers in the East Bay
Linnettte Edwards in SF Business Times on the influx of OpenAI buyers in the East Bay
Linnette Edwards recently shared her insights with the San Francisco Business Times in their "The East Bay is suddenly seeing a 'significant influx of OpenAI buyers' for all-cash real estate deals"
The AI effect in San Francisco is spilling over to the East Bay's residential real estate scene, with some agents saying they are seeing tech money show up in the form of all-cash offers over the past several weeks.
Agents covering both Alameda and Contra Costa counties told the Business Times this week that certain neighborhoods are now popping with interest and bidding competition.
Linnette Edwards, noted that "the flats" in Berkeley are receiving an overload of interest. She said she performed a recent analysis in that region for Berkeley and found over 80% of the sales in October were all-cash.
"The reason why we're seeing an increase in certain pockets is tying directly back to AI money," said Edwards, who noted that she recently dealt directly with all-cash AI homebuyers. "I always tell my clients when you're looking for neighborhoods that tend to retain their value over others, look for 'trick-or-treatable' streets. That means that you have more of a community, you have flatter streets, you have more walkability — so pay attention to the hotspots for trick or treatable neighborhoods and focus on those for long-term buys."
By contrast, Oakland's market has been softer, Edwards said. "Prices in Oakland are diminishing more than other surrounding towns. It's picked up a little bit, but surrounding areas have picked up a little bit more than Oakland."
But in Contra Costa County, Walnut Creek and Lafayette are both in demand this fall.
"Lafayette remains the hot ticket for desirability, and again, it would be neighborhoods closer to town and walkable neighborhoods like Burton Valley," she said.
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The AI boom is hitting San Francisco's housing market, with a spike in luxury home sales playing out across the city just as some OpenAI employees got a payout. That includes recent home sales on Billionaires' Row for $26 million and $42 million, the latter S.F.'s most expensive home sale of the year.
Most Bay Area markets saw significant year-over-year increases in their home sales in September, according to data provided by Compass. Of the larger county markets, San Francisco had a particularly dramatic 35% increase in sales, despite the number of homes for sale falling by 28% from last year. September sales of $5 million-plus homes in San Francisco spiked 55% compared with September 2024. Santa Clara and San Mateo counties, beneficiaries of their more established AI booms, have dominated sales in this price segment, with 64% of all year-to-date sales in the Bay Area.
In the East Bay, more choices and more time to shop added up to more sales during September compared to both August and September 2024, according to David Stark with the Bay East Association of Realtors, whose latest report showed that homes remained on the market an average of 32 days, an increase from earlier in the summer. The number of homes for sale across Alameda and Contra Costa counties also continued to exceed last year’s levels, giving buyers more options.
Moreover, following three consecutive months of price declines, the median sales price across the East Bay rose modestly in September and remained higher year over year.
Most notably, Orinda surpassed the $2 million median mark for home values, up almost 15%, and sales followed a similar trend, led by a significant increase in Orinda, Stark said.