Rising rents tempt San Francisco residents to buy
The improving real estate in Bay Area is tempting many residents to consider buying instead of renting. Additionally, the current record-low mortgage interest rate is helping potential homebuyers finance the dream of owning property in this unique metro.
The average monthly rent in San Francisco has risen to $2,734, according to rental data firm Real Facts. The entire rental market is up 12.9 percent since 2011, the San Francisco Examiner reports. With such a large increase in rental prices, homeownership is often the more affordable choice and can mean a better investment.
According to ALTOS Research, the median single-family home price as of July 13, 2012 was $782,032. This is an increase from approximately $770,000 experienced just two weeks earlier on July 1, 2012. The median price paid per square foot for a home in the metro was $466 as of July 13, 2012.
In addition, rising housing demand in San Francisco is improving the time property spends on the market before selling. The source claims that the average home for sale in the metro was on the market for approximately 84 days before closing, as of July 13, 2012.