MORE at http://www.realestatedecoded.com/san-francisco-housing-bubble-2016-you-forgot-about-this.
If you ever wondered why the supply of homes for sale in San Francisco is so tight even though San Francisco home prices are so high, this video is for you!
Feel free to leave a comment.
Image sources:
http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby
http://www.zillow.com/san-francisco-ca/home-values/
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San Francisco is the most fascinating real estate market in the United States right now. Home prices aren’t skyrocketing in San Francisco anymore.
The big question is whether home prices will just level off or whether they will end up falling.
The party line is that home prices in San Francisco have gone up so fast, in part, because of the low supply of homes for sale in San Francisco. And the low supply of homes for sale in San Francisco is usually blamed on San Francisco’s hostility to building new homes.
That’s true but there’s another obvious reason for the low supply that everyone forgets.
Doesn’t it seem weird to you that with such crazy high home prices that there would be a SHORTAGE of homes for sale in San Francisco?
That’s because the supply of homes is determined by CURRENT home prices AND expected FUTURE home prices.
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John Wake
Geek-in-Chief at Real Estate Decoded
htttp://www.realestatedecoded.com
Real Estate Agent at HomeSmart
