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Wednesday, December 9, 2015

No, For Real This Time: SF's Real Estate Market is in a Bubble

Posted By on Wed, Dec 9, 2015 at 1:19 PM

click image FLICKR/PREMII
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The following news may shock you, but bear with us for a moment: San Francisco is an expensive place to live. Real estate prices are really high here. Like, unrealistically high, so high that prices are overdue for a crash.

San Francisco is in fact the most bubble-like real estate market in the country, according to a recent survey of real estate experts sponsored by Zillow (the website handy for observing just how bubbly real estate prices have become).

Most experts surveyed fingered San Francisco as the market most likely to see a price crash within the next year. Which means now might be a time to sell that $500,000 cottage (if you haven't already).

This is just the latest in doomsday predictions for the city's roaring housing prices. The latest reports peg the median price of a home and the median rents of a one-bedroom at "if you have to ask, you can't afford it." Things are so great that renting out a converted delivery truck for $600 is a good option.

Perhaps in light of all that, it's no surprise that real estate experts feel the city's real restate prices are overvalued. Here are the results from Zillow's survey, in which said experts were asked to list the riskiest markets in the country.

We are now and forever No. 1.
housing.jpg

Believe it or not, experts also say that the national housing market has yet to "fully heal" from the damage caused by the foreclosure crisis. Remind yourself of that the next time you give your landlord half of your earnings.

Not everyone is in doomsday mode.  "It's significant that some experts are starting to worry about bubble conditions, but in my opinion, there's no real danger of a severe crash like the one we all remember from the last decade," according to Dr. Svenja Gudell, Zillow's chief economist. So buy away. What's the worst that could happen?

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About The Author

Chris Roberts

Bio:
Chris Roberts has spent most of his adult life working in San Francisco news media, which is to say he's still a teenager in Middle American years. He has covered marijuana, drug policy, and politics for SF Weekly since 2009.

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