What do you get when you combine low interest rates, a surging stock market, a sudden growth in employment and population, shockingly high rents, an inadequate supply of homes, and all the tech startups and IPOs in the world?
SF's real estate market!
Just as the law of supply and demand states (thanks Econ101), when there is a limited supply of inventory and an ever-increasing demand for housing, home prices will increase accordingly. This has left many SF residents migrating to the East Bay in search of more affordable housing options, attractive neighborhoods, and oftentimes just the simpler things in life, like a backyard. As SF's demand spills over across the Bay Bridge, we're seeing East Bay home prices and sales skyrocket as a result.
It's difficult to predict how long this will last as numerous political and economic factors can affect any real estate market. However, home prices are appreciating at a slower rate than prior years, which indicate that the buyer and seller sides of the market are starting to even out.
All things real estate.