San Francisco on its Way to Being Most Expensive Real Estate in U.S.
Throughout the country, the economy is improving, but it seems that in many ways, the Bay Area is leading the country. According to reports, the real estate values in the Bay Area will be seeing double digit spikes over the next year.
A recent forecast from real estate analytics firm Veros predicts that residential real estate prices in the San Francisco and East Baymetropolitan areas will spike an average of 12.7 percent by June 2014. The company attributes the projected increase to the region’s low unemployment rate and scant housing supply.
Veros also forecasts robust growth for the Los Angeles and San Jose metropolitan areas, which placed second and third on the list with expected price gains of 11.6 percent and 11.1 percent respectively. The news comes less than two weeks after the California Association of Realtors announced that home-price gains in the state reached highs not seen since 1980.
According to reports, by this time next year, the Bay Area will have pretty much recovered from the real estate crash and may be on its way to property values above those at the peak of the bubble.
Part of the rise in housing prices might be due to an international influx. From 2005 – 2009, about 71,000 people moved to the Bay Area from other countries.
Some experts are concerned about the rapidly rising housing prices. The double digit rises in property value are reflective of the the early 2000s, before the crash. Credit requirements have tightened but mortgage derivatives (where mortgages are sold to investors in blocks) are still being sold with few or no regulations.
Still, it’s a great time to be a homeowner in the Bay Area. The job market is strong. We have one of the most highly educated population in the world and of course, the weather can’t be beat.