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San Fran Housing Bubble Bursting?

October 19, 2015

By Stephen Frank: capoliticalreview – excerpt

Condo prices are down, sales of homes have declined. Median condo and homes prices have declined 4.5%. Looks like the bubble has burst and the media has not reported this as a problem. Once it does, watch for the spiral—and for local firms to look for a safe haven outside of the Bay Area and probably outside the State. Though these folks are wealthy, they also have high debt. When their homes go under water expect them to find lower cost housing—and that is NOT in the Bay Area.

Glenn Kelman, CEO of online real estate brokerage Redfin, said he was already seeing homes get fewer offers because many Bay Area residents “pay for houses with stock, so that willingness to bid $300,000 over asking is being limited by the stock market.”

Redfin tracked flat home prices last month, with prices tipping just past $1 million. Condo prices slipped by 10 percent last month, according to Redfin.

“The funny money that people have had to pay for houses is in shorter supply,” Kelman said.

The rest of the economy is very soft—expect 2016 to be a roller coaster…

Condo, home prices slip as market frenzy cools (Video)

By Cory Weinberg, San Francisco Business Times

San Francisco condominium prices fell last month and home sales lagged as the frenzied market cooled off.

New condo prices fell 3 percent and resales slipped by 2 percent as the number of sales declined by nearly 20 percent between August and September, according to the Mark Co., a condo marketing firm. Paragon Real Estate Group also tracked a slight decline in median condo and home prices due to seasonal changes, dropping 4.5 percent to $1.155 million.

Glenn Kelman, CEO of online real estate brokerage Redfin, said he was already seeing homes get fewer offers because many Bay Area residents “pay for houses with stock, so that willingness to bid $300,000 over asking is being limited by the stock market.”

Redfin tracked flat home prices last month, with prices tipping just past $1 million. Condo prices slipped by 10 percent last month, according to Redfin.

“The funny money that people have had to pay for houses is in shorter supply,” Kelman said… (more)

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