San Francisco News
San Francisco is second-healthiest housing market in U.S.18 Mar 2013 11:56 AM
Although it was hit hard by the housing market downtown of the late 2000s - as so many U.S. cities were - San Francisco has demonstrated a strong ability to bounce back to its pre-recession levels. In recent months, increasing demand and consumer confidence have helped strengthen the San Francisco real estate market, helping it become one of the healthiest in the country, according to new research from Trulia.
Jed Kolko, chief economist for Trulia, recently compiled a list of the U.S. cities with the healthiest housing markets, and San Francisco came in at number two, just below Houston. To reach this conclusion, Kolko looked at job growth, low vacancy rates and sales volume. From these measures, Kolko concluded that San Francisco, with its low unemployment, rising demand for houses and dwindling inventory of for-sale homes, was in the best shape it has been in for several years.
It is not just Trulia that is trumpeting the Bay Area's housing market strength, however. According to the Home Buying Institute, a thorough supply-and-demand shift has helped raise the median price of a home in the city a full 32 percent over the course of 2012. Although property values have risen at every price point, substantial gains for luxury homes in the Bay Area have contributed most significantly to the rising median price, the source reports.
Both Trulia and the Home Buying Institute cite the region's improving economy as a major cause of the recent gains. Unemployment is down, salaries are up and more people are flocking to the city for its strong tech and financial sectors. Cumulatively, these trends have helped inspire confidence in home buyers and sellers - three times as many San Francisco residents believe home prices in their neighborhood will increase in the next year as did in 2009.