Business 2.0, the online portal of Money magazine, Fortune and CNN has awarded San Francisco the #1 bubbleproof real estate market
slot. Their thinking behind this cites real estate appreciation from 1949 to 2006 for our fair City as 4+%, about double the national average for that time slice. At the same time DataQuick has released numbers showing an overall bay area decrease in sales and Inman supplied headlines to the same effect.
What the Altos Research real time numbers say is that over 2006 there was a huge increase in inventory. Many of these sellers simply got discouraged and took their properties off the market, some have rented them with an option to purchase. Everyone, buyers and sellers alike, are hedging their bets. Sellers are unwilling to budge on their prices, and buyers are waiting for prices to fall. This impasse may have a bit to do with all the relentless “sky-is-falling” press, as mortgage rates have remained in line.
The bottom line is that real estate remains pricey in San Francisco. Perhaps the best quote I’ve heard is that living here is like dating a super model, it’s expensive and high maintenance.