Real estate prices in San Francisco have far surpassed their price prior to the bubble bursting in 2007. It was in 2007 when prices of homes in San Francisco hovered around $900,000. They dropped to a low of around $750,000 in 2009 before beginning to recover. Priced soon began to climb again and have now reached an average of $1,300,000. It’s hard to believe that home prices in San Francisco could have rebounded so sharply following the national housing and foreclosure crisis, but they have. Prices of condos and TIC’s have all followed a similar price pattern and are now unattainable for most residents.
There has been talk recently of Trump shaking up the Bay Area housing market. The primary correlation to Trump is that interest rates are expected to climb and this could put a damper on the Bay Area real estate market. Certainly rising interest rates will make the Bay Area even less affordable since most buyers are borrowing the majority of the purchase price and financing their homes with either a 15 or 30 year mortgage.
Our current search of the San Francisco area MLS showed minimal inventory for under $1,000,000. Competition for these lower priced homes is fierce. Let us help you negotiate on your home purchase in San Francisco. Working with an experienced team may be the difference between bidding and winning on the negotiation.