Did San Francisco real estate values hit a peak? Only 11 percent of San Francisco households can actually afford to buy a home at the current median price in the place they live.
ByIt is hard to believe but home values in San Francisco have doubled in a matter of four years. Since 2012 the typical San Francisco home went from $600,000 to $1,200,000. The Bay Area is under a tech based hypnotic spell and foreign money just can’t get enough of million dollar crap shacks in San Francisco. As we all know trees do not grow to the sky with unlimited potential and at a certain point the laws of reality have to hit. Only 11 percent of households in San Francisco can actually afford to purchase the typical $1.2 million crap shack. And that is why home prices in San Francisco have been waffling for the past year. It looks like an interim peak has been reached. Of course this also has to do with the stock market moving sideways and people digging deeper into all the venture capital money chasing unicorn tech companies. It seems like people are denying a bubble because we just had a bubble. The bubble was in real estate. The bubble hit California. So of course it can’t happen twice in the same place. But this definitely feels like an echo bubble brought on by foreign money, investors, tech money, and a stock market that has only gone up for 7 years now…
