Bay Area Real Estate Market Cycles – Lots of factors affect the cycles, some specific to market areas. Bottom line, the economy mends, populations change, inflation accumulates over time, and the repressed demand of those who want to own their own homes jumps back and home prices begin to rise again. As long as our local market demand exceeds supply, they will likely continue on the rise, short of any significant changes in the economy. » Read more about: Bay Area Real Estate Market Cycles »
Happy Spring! Hope you had a great Easter/Passover holiday.
We all know there are many cogs in the economy that play into our Bay Area Real Estate Markets.
Let’s take an overview look at some of these:
SF Population Trends & Growth/California Migration Trends/Our Pipeline of Construction/Interest Rates/Consumer Confidence
IPOs & Financial Markets/Median Rents and Household Income, & more. » Read more about: Economic Context Factors Underlying Housing Markets »
While I’m not qualified to evaluate the Federal Debt levels, we are all hearing about the increase in the Federal Debt, and it is fair to note that an increase in debt levels can play a major role in future financial cycles. Our low interest rates in recent past years have reduced risk of instability, but it’s worthy to note that significant increases in interest rates could lead to future instability. Here are some charts prepared by the Federal Reserve in St.
Let’s take a look at our market trends to get a broad view of how the market has performed over time. And let’s keep in mind that our San Francisco market has different trends in specific segments based on price, location, and property types. After reviewing this overview of market trends, to get a better understanding of hour your neighborhood has performed, let’s talk and review it together.
The great advantage of reviewing annual data is how often the market trend lines clarify into a straightforward dynamic, » Read more about: Long-Term Trends in San Francisco Real Estate »
Are you curious about our Luxury Market in San Francisco? Let’s take a look into the detail. There are many factors that affect our local market – political and financial markets, interest rates, the course of the high-tech boom and future IPOs, etc. As we move into 2018, the San Francisco market appears to be off to a heated start characterized by robust demand and limited inventory, a dynamic that has driven our market for most of my career. » Read more about: San Francisco Luxury Home Market Report »
Greetings. Our February newsletter covers the bay counties including San Francisco, Marin, Alameda, Contra Costa, San Mateo, Santa Clara, Sonoma, Napa & Solano. It provides information on median home prices, appreciation rates, luxury home markets, demographics and other market factors, conditions & trends. Given limited inventory in January, this newsletter provides a look through the rear-view mirror into 2017 activity. We’ll have a better idea regarding where the market is heading in 2018 once the spring selling season data starts coming in. » Read more about: A Survey of San Francisco Bay Area Real Estate Markets »
There are many factors that might affect SF and Bay Area real estate markets – tax law changes, interest rates, soaring stock markets, foreign buyers, migration trends, housing affordability, climate change, new home construction, and so on. I have learned over the past 30+ years that booms can go on much longer than one would expect, and negative adjustments can arrive suddenly from unexpected directions. How will these factors ultimately play out, which factors will become dominant, » Read more about: Positive & Negative Factors in Bay Area Real Estate Markets »
The median SF house sales price in 2017 was $1,420,000 (up from $1,325,000 in 2016), and for condos, it was $1,150,000 (up from $1,095,000). Looking just at the 4th quarter, median prices were $1,500,000 for houses (up from $1,350,000 in Q4 2016) and $1,185,000 for condos (up from $1,078,000) respectively.
The chart below,
Since Case-Shiller Indices cover large areas – 5 counties in the SF Metro Area – which themselves contain communities and neighborhoods of widely varying home prices, the C-S chart numbers do not refer to specific prices, but instead reflect home prices as compared to those prevailing in January 2000, which have been designated as having a value of 100. Thus these charts are broad generalizations about appreciation (or depreciation) trends: for example,
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.