July 19, 2012

“San Francisco housing market booms bigger than ever”

San Francisco housing market booms bigger than ever

The average monthly price of an apartment lease has risen to $2,734 — up 12.9 percent since 2011 — according to data compiled by the rental data firm Real Facts. The spike in San Francisco rents seems to be spilling over to cheaper markets like Oakland, where the average rent is now $1,835 — up 14.4 percent since last year. Pacifica, where rents now average $1,908, has experienced a 15.6 percent increase.

A recent survey by Realtor.com shows that The City’s median listing price is up 15.4 percent since last year, which matches a similar upward tick in Oakland, where the average home is selling for $379,000. The number of homes for sale in San Francisco is down 40 percent since last year, and nearly 60 percent in Oakland.

Congrats to the Real Bay Area for this tremendous achievement!

You heard it here first! This site has been calling this since… oh… 1849. Finally we are back on track to overtake Manhattan, Moscow, Japan, and other world class cities in terms of being unaffordable (e.g. exclusively awesome)!

Let’s check in with an expert, shall we?

“With the rising rents, we’re definitely seeing some people get off the fence,” Kearney said. “But still, a lot more people can afford to pay rent on a monthly basis — even if it’s higher than a mortgage payment — than those who can come up with a down payment. So we’re seeing more and more of those down payments from parents.”

That’s right! Now’s the time to buy! Unlike when the market was tanking (that was also a time to buy BTW). If you don’t buy (with your parents’ money), you’ll be priced out forever!

 

Comments (56) -- Posted by: burbed @ 5:49 am

56 Responses to ““San Francisco housing market booms bigger than ever””

  1. Tracy Tea House Says:

    Why rent when you can buy 840 Sf! http://www.ziprealty.com/property/386-CURETON-PL-SAN-JOSE-CA-95127/11592929/detail When I fist looked at this house pictures of the interior were up. They were so bad that now there is only the lovely outside.

  2. SEA Says:

    Imagine how much better the world will be once everyone is “priced out forever.” How many REALTORs will be needed?

  3. madhaus Says:

    No problem. Then everyone’s parents will not only lend them money, they’ll become realtards just to fill the used home sales gap.

  4. Real Estater Says:

    >>Imagine how much better the world will be once everyone is “priced out forever.”

    Don’t worry. Every time interest rate drops, a few guys on probation are released back into the market.

  5. Real Estater Says:

    Like what just happened

  6. SEA Says:

    The free money will end one day, and “Perhaps most important is that historically the bottom of a property bubble is never found until interest rates start going up. Rough road ahead!

  7. CB Says:

    #6, what do you think the 30 yr will be at in 2014? 2016? Barring some yet to be seen overhyped technology fueling another boom, I can’t imagine it being much higher than 4% for the foreseeable future. I’d say the road ahead is pretty much I-5.

  8. Real Estater Says:

    If you think free money will end one day, it’s more the reason to lock in a low rate now. Your future will be secure regardless of what happens. If the rate drops further, you can always refinance. It’s a game you cannot lose.

  9. madhaus Says:

    If the rate drops further, you can always refinance. It’s a game you cannot lose.

    Of course you can lose. You can buy a home that drops in value. You can buy a home that was a former meth lab. You can buy a home that moves out of the RBA. You can buy a home at Gables End 2.0. You can buy a home in the Nuh Uh region. You can buy a home at too high a price because you didn’t pay attention to comps and believed the realtards.

    This site has plenty of examples of ways to lose if anyone doesn’t believe it’s possible.

  10. Sunny(vale) Kim Says:

    If the rate drops further, you can always refinance. It’s a game you cannot lose.
    —–

    “You can always refinance”. That was the favorite mantra in real estate industry in 2003-2006.

    Any person with rational mind should be skeptical about any pitch that ends with the words “YOU CANNOT LOSE”. Sound like coming from Barnie Madoff and Alan Stanford’s mouths.

  11. Crissa Says:

    I-5 eventually goes through the Grapevine or Siskiyou Pass…

  12. CB Says:

    What is the figure, one third of creditworthy California homeowners cant refinance? For new buyers, all it takes is a 10% dip and you too are out of the refi game.

  13. CB Says:

    I-5 eventually goes through the Grapevine or Siskiyou Pass…

    Hopefully this time I am disciplined enough to sell before Magic Mountain. (assuming we’re headed southbound).

  14. SEA Says:

    “Hopefully this time I am disciplined enough to sell before Magic Mountain. (assuming we’re headed southbound).”

    Magic Mountain is about 700 miles after the Siskiyou Pass (southbound).

  15. SEA Says:

    By the way, Siskiyou Pass is the highest point on I-5. (#11 is suggesting a period of high interest rates, even if the road is bumpy, with some curves, turns)

  16. SEA Says:

    #7- Given that so many people cannot afford an extra 10 cents for gasoline, a very small nominal increase in rates will be another catastrophe for those who cannot refinance their increasing ARM.

    What I’d really like to know is the value of the dollar in 2014, or 2016. It’s been a very long time since we’ve had threats of “double digit inflation,” like the post-Vietnam period (late ’70s).

    If we suddenly experience a ‘high’ level of inflation, relative to the fixed-rate loans written today, then clearly borrowers win.

    That said, as long as most of the World is willing to work for $2 a day, or less, I see continued pressure toward deflation. (And if $2 doesn’t capture “most of the World,” please up it to $5–that should be plenty sufficient.)

  17. SEA Says:

    Enjoy the Ride (northbound)

    Enter Oregon at 5:52

  18. Divasm Says:

    It never ceases to amaze me what you can find on the internet. Watching that video, I’m reminded of my first speeding ticket, Southbound on 5 coming back from Ashland, in a section that changed from 65 to 55mph going downhill. The cop told me I should be careful of hitting bears, as I was surrounded by semis. Just admit it’s a speed trap, ok?

  19. herpderp Says:

    The good: I got a good interest rate on my non-RBA house.

    The bad: The interest rate on my savings account is non-existent.

  20. CB Says:

    Magic Mountain is about 700 miles after the Siskiyou Pass (southbound)

    But we start in the Bay Area.

    Predictions are all over the place. Like you say, we can have inflation and we can have wage stumping deflation. Who knows? My take is it will be far less exciting than the past 5 years.

  21. Crissa Says:

    Actually, Southbound 5 is 55 from Ashland (uphill) until you hit California (downhill).

    But yes, even a good straight boring freeway eventually finds mountains and passes that it must twist through.

    Only ticket I’ve gotten on 5 is for ‘insufficient signalling’ which was bs and I challenged the court and the cop didn’t even show – after I drove five hours twice to get there.

  22. SEA Says:

    The only thing that’s nearly 100% is RBA real estate. That only reason that’s not 100% is because the “automatic price double” is 10 years or sooner. No one knows just how much sooner. In good times, RBA real estate might double every 5 years, but in the worst of times it takes the full 10 years.

  23. nomadic Says:

    But yes, even a good straight boring freeway eventually finds mountains and passes that it must twist through.

    Yeah, even I-75 from Michigan to Florida has a little bit of interest around KY or TN. I don’t quite remember; I was 22 when I vowed never to do that boring drive again.

  24. SEA Says:

    Ever driven I69 or I96?

  25. Real Estater Says:

    >>I was 22 when I vowed never to do that boring drive again.

    What makes a drive boring is the company or the car.

  26. Real Estater Says:

    Pralay says,

    >>Any person with rational mind should be skeptical about any pitch that ends with the words “YOU CANNOT LOSE”.

    Any person with a rational mind understands that you cannot lose the refi game described above. Reasons are very simple:
    a) If rate goes lower, you refi to a lower rate
    2) If rate goes higher, but you’ve already locked in a low rate, you win relative to the market
    Either way you win. You cannot lose this game.

  27. Real Estater Says:

    Madhaus says,
    >>This site has plenty of examples of ways to lose if anyone doesn’t believe it’s possible.

    What do any of those examples given in #9 have to do with refi?

  28. herpderp Says:

    RE, you nicely dodge the question of “what happens when you have no equity to refinance with AND rates go up?”

  29. nomadic Says:

    #25, what makes a drive boring is 8-12 hours in any car, especially 2-3 days in a row. That’s when it’s time to fly.

    SEA, yes and yes. Many miles on 96. And 94. I bet RE has driven, or at least ridden, I-94 too.

  30. Real Estater Says:

    >>RE, you nicely dodge the question of “what happens when you have no equity to refinance with AND rates go up?”

    Old timers here know my position well. When rates are this low, I recommend 30 year fixed. Therefore, the scenario you are talking about doesn’t exist. In fact, that’s the whole point. You want to lock in your win right now. What happens in the future should not affect you in a negative way. It can only affect you positively if rates go down.

  31. Real Estater Says:

    >>#25, what makes a drive boring is 8-12 hours in any car, especially 2-3 days in a row.

    Not true. There are a good number of cars I can think of that I would gladly drive 2-3 days in a row.

    >>I bet RE has driven, or at least ridden, I-94 too.

    Never. Don’t even know where it is.

  32. Sunny(vale) Kim Says:

    Never. Don’t even know where it is.
    —-

    Seriously? How can one go to University of Michigan without “knowing” I-94? Swimming on Lake Huron or underground tunnel?

  33. London Home Inventory Says:

    I agree with SEA.

    There are some new spambots that now call out previous commenters in the thread. This remark may well be one of them, so I’ve approved it but took the URL out. –ed.

  34. herpderp Says:

    “Therefore, the scenario you are talking about doesn’t exist.”

    What? Tell that to all the underwater California homeowners who listened to you last time around.

  35. Real Estater Says:

    No, they didn’t listen to me. They listened to nomadic. I always recommended fixed rates.

  36. Real Estater Says:

    #32,

    Which part of Never did you not understand?

  37. Sunny(vale) Kim Says:

    Is the degree from Univ of Michigan fake, like Scott Thompson?

  38. nomadic Says:

    Maybe it was a correspondence course. Or he couldn’t get into Ann Arbor, so he went to the Flint campus!

  39. Sunny(vale) Kim Says:

    It’s hard to imagine someone living in Flint does not “know where it [I-94] is”. Flint is only 50 miles north from Ann Arbor.
    It’s like someone at Palo Alto does not know where I-680 is.

    May be he took one of “those” correspondence courses from top universities (I mean University of Michigan). And that’s why he is getting raises, bonuses and living in Mr. Roger’s neighborhood.

  40. madhaus Says:

    #32, 39. Enough. This is your second warning. There’s plenty to make fun of in what little inventory is available without getting personal.

    Thank you.

  41. Real Estater Says:

    What a strange thread with a strange man…I’m completely lost, hopefully for the better.

  42. Real Estater Says:

    #34,

    To elaborate, the fact that anybody is underwater has little to do with mortgage rate. They are underwater because home prices dropped in their area. If they have a fixed rate mortgage, life goes on regardless. Car owners are always underwater, and most don’t go bankrupt because of it.

  43. Sunny(vale) Kim Says:

    Strange tread indeed – in any DEGREE of measurement.

  44. SEA Says:

    It might be fun to ask what comes to mind when the term “The Big House” is suggested.

  45. SEA Says:

    “Car owners are always underwater, and most don’t go bankrupt because of it.”

    I have NEVER been underwater on any car.

  46. Real Estater Says:

    >>I have NEVER been underwater on any car.

    Really? I guess you found a magic ride that does not depreciate in value.

  47. madhaus Says:

    You can’t be under water unless you borrowed against a depreciating asset. Or went scuba diving.

  48. Real Estater Says:

    Plenty of people have car loans. In car-speak, it’s called “upside down”. Same concept.

  49. SEA Says:

    #48- Wrong again. One is only “upside down” if the (net) fair market value of the asset is less than the security interest held by some third party.

  50. madhaus Says:

    And anyone who paid cash for their vehicle, by definition, cannot be underwater.

  51. Real Estater Says:

    >>And anyone who paid cash for their vehicle, by definition, cannot be underwater.

    Like I said, same concept as for home purchase.

  52. madhaus Says:

    Okay, now you’re just trolling. Ta.

  53. Real Estater Says:

    No, I’m making a serious point, just as you did.

    If you buy a house for cash, you can’t be underwater. If you buy a car for cash, you can’t be upside down. We are making the same point. If I’m trolling, what are you doing?

  54. SEA Says:

    #53- Let’s go back to your original statement: “Car owners are always underwater, and most don’t go bankrupt because of it.”

    Proof?

  55. Real Estater Says:

    You obviously have never purchased a new car from a dealership. The moment you walk out the door, the value of the car drops by 20%. Your car is worth less than the amount owed on it, assuming you finance the purchase.

  56. nomadic Says:

    …assuming you finance the purchase.

    That’s a pretty big assumption, but I honestly don’t know what you guys are bickering about. What was your point, RE?


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