As we approach the end of 2015, it’s a great time to take a look back at how the Bay Area housing market fared this year.

This year turned out to be another strong year overall for the local real estate market, especially for home sellers.

The Bay Area housing market experienced good appreciation in home prices in many areas, although some home values did come back to earth a bit as the year wore on. The median sales price in the Bay Area through October reached $710,000, up 9 percent in 2015 from last year, according to local MLS data analyzed by Coldwell Banker.

Strong buyer demand, a vibrant local economy and a continuing decline in the inventory of homes on the market combined to make 2015 another seller’s market here in the Bay Area. Healthy job growth, especially in Silicon Valley’s tech sector, the biotech industry, and financial services, fueled demand for homes — everything from entry-level properties to multi-million-dollar estates.

Another factor that helped bolster the housing market was a continuation of attractive mortgage interest rates, which remained near historic lows this year and continued to help make homes more affordable.

According to Freddie Mac, the average 30-year fixed rate mortgage in the U.S. as of mid-November stood at 3.98 percent. Although the Federal Reserve is considering a rate hike this month, the California Association of REALTORS® (CAR®) believes that any boost in rates will be relatively small and will increase gradually in the coming year.

One of the biggest challenges to the housing market in 2015 was that there were just not enough listings to meet buyer demand. The number of homes for sale year to date in the Bay Area is down 16 percent from last year, when inventory was already lower than normal.

The shortage of listings led to multiple offers on some properties this year, and even bids over the asking price for certain homes. And limited inventory may also been a contributing factor in keeping a lid on home sales overall in 2015 with sales in the Bay Area up just 2 percent so far this year compared to last year at this time.

Statewide, CAR® expects existing, single-family home sales to reach 407,500 by yearend, up 6.3 percent from the 383,300 transactions in 2014. CAR® also projects that the median sales price statewide will finish the year at $476,300, up 6.5 percent from last year.

CAR® Vice President and Chief Economist Leslie Appleton-Young said several key factors came together to create a healthy housing market in 2015, and she expects that will continue in the coming year. "The foundation for California’s housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth," she noted.

If you’ve been thinking about selling your home, now may be a good time to take advantage of the current seller’s market. There just are not enough good homes on the market right now.

I know you may have questions about making a move, what your home might be worth, and what’s involved in putting a home up for sale. I’m happy to walk you though the process and answer any questions you may have. Please give me a call or e-mail me today and we’ll get started!