San Francisco Home Prices Fell for the First Time in Four Years in March
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Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#2The article seems to imply some meltdown in housing is around the corner, but it seems more like the housing market is just leveling off as a result of market forces. You can only drive home prices so high before there aren't enough people who can afford them anymore. Hopefully that means that rent prices will also level off in the area in the near future.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#3The article seems to imply some meltdown in housing is around the corner, but it seems more like the housing market is just leveling off as a result of market forces. You can only drive home prices so high before there aren't enough people who can afford them anymore. Hopefully that means that rent prices will also level off in the area in the near future.
In years past, there was a surge in the market due to the IPOs of companies like Twitter and Facebook. This could indeed just be a return to the mean.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#4I think that SV has probably been in recession for the last few quarters judging from some friends I have who have been interviewing. Everyone is interviewing like crazy but few are hiring.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#5The article seems to imply some meltdown in housing is around the corner, but it seems more like the housing market is just leveling off as a result of market forces. You can only drive home prices so high before there aren't enough people who can afford them anymore. Hopefully that means that rent prices will also level off in the area in the near future.
That's not exactly true. A lot of REIs are built on complex structures. The SF estate market might be fueling other investments. Once one starts to collapse it can have a domino effect. Basically if investors were expecting 10% annual return and you tell them this year might be 1-2% they'll take that money and move it elsewhere. Now you have to raise money or sell.
When I used to live in downtown Miami there were high rises going up everywhere with prices starting at 500k-1mm. These same places would later be short sales for 150-250k after the GFC. There was a glut of luxury apartments and few buyers.
I wanted to buy one of these condos but couldn't find a bank that would give me a loan. They're were petrified at what was happening there
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#6Talking to a notary based in SF this week, she saw an increasing # of Bay Area clients buying a home in Portland or Seattle and moving.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#7I think that SV has probably been in recession for the last few quarters judging from some friends I have who have been interviewing. Everyone is interviewing like crazy but few are hiring.
I've noticed a (perceived) spike in the number of foreclosures in SF on Zillow as well over the last 6 months.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#8SF had another real estate bubble during the dotcom boom, and as far as I know, the bust was regional in scope.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#9Maybe it's just redfin not having this in their own data, but I'd really like to see these graphs from 1998 and up. Only going back to 2012 isn't very useful in my opinion.
Re: San Francisco Home Prices Fell for the First Time in Four Years in March
#10Talking to a notary based in SF this week, she saw an increasing # of Bay Area clients buying a home in Portland or Seattle and moving.
My brother in Portland has been complaining about the area receiving all these ex-San Fransisco residents and how they've been driving up prices.