San Francisco, a city notoriously rich in history.
A magical place where for years techies and hippies alike would flock in droves.
Though, within the last few years it seems as though much of the San Francisco chatter has been around their red-hot real estate market.
And while San Francisco offers so many reasons to make anyone want to hop on the next fan boat to soak up those West coast rays, a recent census showed that over30% of current San Francisco residents said they would leave the city if they could.
Yeah, that’s right.
They’d jump ship to find a better paradise given the chance.
So if San Francisco is such a desirable place to live, what would make residents feel so strongly?
Here are some guesses as to what is causing such a stir:
- Housing prices jumped 4.5% from February to March
- Home values have gone up over 7% within the past year
- There have also been rumblings that these numbers will continue to increase another 1%
- Home rental costs are predicted to reach $4,429 vs. the nationwide average of $1,409
Some residents are even taking their own measures to avoid forking out high costs for home.
Example, this guy:
You might have heard Peter’s name floating around local and national publications. The Washington Post wrote a piece on Peter renting out a box in his friend’s apartment for $400 a month due to the rising cost of living in the city.
Whatever the factor may be, there are many mixed reports out there indicating that San Francisco’s booming bubble is about to burst, but is it really?
Let’s take a closer look:
2016 Average Sale Price in SF:
2016 Average Rental Price in SF:
2016 Average Price per Square Foot:
And while the above charts are showing a strong increase in San Francisco real estate over the years, the reality of the struggling tech industry’s stocks is all too real. The Nasdaq took a heavy blow this year, dropping 15%.
What does the tech drop mean for San Francisco’s realtors?
Not all agents should necessarily worry about the tech dip as it seems to be that only the luxury market has been feeling the impact.
Since the dip in tech stocks earlier this year, buyers may be a little bit more conservative with their spending.
Agents may expect to hang onto a listing a little longer than they would have one year ago.
Inventory’s gone up - that’s why.
In San Francisco inventory has gone up 52% as of May 2015 vs. May 2015, though inventory in the Pacific Heights is up even higher at 100% over the same time period. Condo inventory in the neighbourhood is reaching heights - no pun intended - of over 140%.
Ultimately, time can be the real teller of what will happen with San Francisco’s real estate market. One thing we do know for sure, San Francisco will continue to be one of the most desirable cities to live in North America.
Do you have predictions of how San Francisco’s real estate market will turn out? Let us know.