Real estate happenings in San Francisco
The property market in San Francisco is beginning to heat up as the economy around the United States slowly starts to recover, and there are several reasons why many people are considering purchasing one of the homes for sale in the Bay Area. However, without a little research into the local scene, one cannot expect to command accurate asking prices and home values.
Take a look at some of the recent developments around the Bay Area to determine if a house in the region is the right choice for your relocation.
Rising home values
Even though Northern California experienced the housing bust of the mid-2000s along with the rest of the nation, home values have been slowly rising since the downfall. The San Francisco Chronicle reported that over the course of the 2012-2013 tax year, home prices in the Bay Area shot up by a total of $6 billion - a whopping 4.17 percent increase.
"It is starting to come back, there is no question," said real estate expert Phil Ting, according to the news source. "San Francisco remains probably the strongest real estate market in the state. Areas that traditionally have been in high demand remain fairly strong. I feel our recessionary recovery is U-shaped. We've definitely stabilized. It doesn't feel like it's jumping back in a sharp V shape the way it did in 2004 or 2005."
Those who think commercial leasing has little to do with the residential market are in for a surprise - the weaker the leasing market, the less companies operate in a region, and this can actually increase the amount of employees seeking to live in a metro area.
While this might seem backwards, companies might relocate to save money on leasing, and thus employees will be forced to relocate due to commuting time and office distance. In turn, landlords may drop lease rates to attract more businesses, forcing new employees to move to the area from abroad.
According to the San Francisco Business Journal, vacancies increased during the summer months of 2012 - information from Colliers International listed the vacancy rate of San Francisco at 20 percent. This means that one in five buildings in the city proper are seeking residents. If the booming tech market moves into the suburbs, employees with families might follow the industry.