San Francisco Market Heating Up
Low inventory and high demand are pushing the local real estate market to the extreme with buyers waiving contingencies, property inspections and even appraisals.
The high end of the market is on fire. The low end of the market is being driven by investors with cash and is also totally out of whack. The middle market, the move-up market is soft because the entry-level homeowners are still underwater.Prices have followed with the average home price now at it’s highest level since June 2010.
What’s next? That’s hard to tell because inventory is incredibly low. We don’t see that changing much in the near future for several reasons.
First, there is not a lot of new home building going on, which is necessary to relieve the pressure.
Second, many existing homeowners aren’t going anywhere. If they have good jobs here, where would they go?
Read the full report here http://www.rereport.com/sf/robb/