Interesting buying trends in the San Francisco real estate market

Despite the volatile nature of regional housing markets, there are a few guaranteed actions that occur when a homeowner successfully navigates a home closing process. Credit checks, down payments and monthly mortgages are all understood as required aspects, but recently, the buyers of the homes for sale in San Francisco are changing the standard way to purchase a property.

Combination of methods
According to The Wall Street Journal, there are really only two options available to homeowners when push comes to shove in a housing market - a home can either be bought outright with cash, or a mortgage can be taken out for a more gradual payment. This is the way real estate has operated for years.

However, around the United States, especially in San Francisco, potential buyers with a lot of available capital are doing something strange - they are buying houses and also taking out mortgages.

"It was an extremely unusual phenomenon, but it's going on quite a bit now," says Jack McCabe, an independent housing analyst, according to the news source.

The reasoning behind the interesting combination is simple - a buyer that comes ready to pay with cash will likely secure a lower asking price than one who is looking to make a down payment or take out a mortgage. However, a mortgage provides a lot of capital at once, and this in turn can be invested in other expenditures if not spent on a house. While there is no guarantee that a return on investment will be seen, the potential monetary benefits may outweigh the possible risks of such a move, but only if you are in a good financial situation.

Growing companies contribute to trend
The affluent atmosphere in San Francisco is what has contributed to the combination buying method trend, and as the corporate sector improves, the amount of wealthy residents in the area will continue to grow.

For example, Google is one of the most lucrative companies in the world, and in the Bay Area, the company's offices add an average of 1,000 employees a quarter, according to Bay Area Structures. Assuming that these new workers will be paid similar salaries, it can be inferred that these people will have a bit of extra money to spend on luxury homes or complete housing payments.

Since these new hires will be snatching up property quickly, now is the time to take a home off the San Francisco market.