The great advantage of reviewing annual data is how often the market trend lines clarify into a straightforward dynamic, instead of the constant up and down fluctuations often seen in monthly or quarterly data charts. (Monthly data is constantly being abused by the media, when proper context is not given.) It is similar to standing back to look at a broad view of terrain as opposed to focusing on the one small piece that is right in front of your shoe.
» Read more about: Long-Term Trends in San Francisco Real Estate »
We just crunched the numbers on a recent U.S. census report tracking population migration to and from California in 2016, and illustrated them in the chart above. Though this chart refers specifically to state data, the trends illustrated almost certainly apply to the Bay Area to a large extent as well. The census report highlights two issues: 1) More CA residents are moving out to other states than residents of other states are moving into California,
» Read more about: Changing Dynamics in California Migration Trends »
Below is a look at the past 30+ years of San Francisco Bay Area real estate boom and bust cycles. Financial-market cycles have been around for hundreds of years, all the way back to the Dutch tulip mania of the 1600’s. While future cycles will vary in their details, the causes, effects and trend lines are often quite similar. Looking at cycles gives us more context to how the market works over time and where it may be going — much more than dwelling in the immediacy of the present with excitable pronouncements of “The market’s crashing and won’t recover in our lifetimes!” or “The market’s crazy hot and the only place it can go is up!”
Note: Most of these charts generally apply to higher-priced Bay Area housing markets, » Read more about: 30+ Years of San Francisco Bay Area Real Estate Cycles »
