Numerous people, including peppy real estate agents, novice “investors,” and disinterested laymen all have told me that San Francisco real estate prices are recession-proof. They said prices couldn’t fall there – too many rich tech people, high income singles, and a beautiful, livable city all combined as evidence of that assumption.
Well, they are WRONG. Here’s the latest headline to flash across the AP:
SF Real Estate Prices Fall 27%
Perhaps after a little more pain, we’ll be able to get a deal – HA! maybe not…but perhaps you think after seeing this headline today:
You think the pain is all over – bank stocks are rising, the economy is correcting nicely, incomes will settle, oil prices are falling, and house prices will stabilize. But TELL ME SOMETHING please. What has changed since last week?
- remember last year oil prices fell back to $55 and everyone thought the pain was coming to an end?
- everyone thought that mortgage problems were contained in subprime loans?
- everyone thought inflation was within ‘reasonable bounds?’
I could go on an on. Bottom line – maybe we can buy some good stuff in SF at 10-20% below current prices…
Chris Grande
7.17.08
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