There are some factors that change relatively frequently: interest rates, inventory in certain categories, things like this. This matters because whatever the current state of the housing market is, people feel like it’s going to last forever. What we have is a chronic problem, which arises when supply fails to meet demand. Kolko says the housing issues in the Bay Area aren’t the kind of acute conditions that characterize a bubble. It's very sharp, but won't last forever.” “We should think of a housing bubble as an acute condition,” Kolko says. He uses data to understand housing markets nationwide. Jed Kolko is the chief economist at the real estate website Trulia. However, if you’re wondering when the next bubble will pop, experts say don’t hold your breath. ![]() This is the case in San Francisco, where real estate values are outpacing incomes, as was the case with the last real estate bubble. Or, you can sell your home for a profit but still not be able to afford to buy something bigger. That’s the downside to an economy on the upswing - home prices get so high that home ownership can become unattainable. It’s a tough market, even if you have a million dollars to spend. “But eventually we'll get something for them.” “For this particular set of buyers they're right at the threshold of what they can afford so it means they have to suffer through more disappointment,” Dodd says. They’ve lost out on half a dozen properties so far. Still, Comer expects an $899,000 Dogpatch loft she’s currently showing to sell for closer to $1 million.īroker Dan Dodd of Vanguard Properties viewed the loft for clients in the tech industry who are looking at the top of their price range. A $1.5 million home is very different from a one bedroom condo. Frequently you're seeing two to three offers and of course it depends on the category. “If you'd talked to me eight months ago I'd still say you're seeing at least five to eight offers on every property,” Comer says. ![]() Comer specializes in lofts in the Dogpatch and South of Market neighborhoods where many of her young, well-heeled tech clients are scooping up properties. Jamie Comer of McGuire Real Estate says that while her business has been thriving with the latest tech boom, the market is starting to get a little choppy. So it begs the question: are we in a housing bubble or a housing crisis? Now, home prices are higher than ever before in the Bay Area. By the recession in 2008, that bubble had also burst. The real estate bubble burst after the first dot-com boom in the late '90s, and then it inflated again around 2003. In San Francisco, the median home price hit $1 million for the first time over the summer, making it the third least affordable housing market in the world behind Hong Kong and Sydney, according to the Demographia International Housing Affordability Survey. ![]() While the national median price for a home is just over $200,000, the median price paid for a home in the nine-county Bay Area last month was just about $600,000. Real estate markets run in cycles, and right now our regional market is soaring.
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