I was asked at the end of last year if I thought the market would continue to be hot in 2015. Marking the 53,000 new jobs and only 5000 new homes, the record low interest rates, rents soaring higher than monthly mortgage payments, and low low low inventory, I was pretty sure the hot market would continue. The Bay View has been incredibly popular and gentrification is in full swing. And now, Bernal Heights had it’s highest sale since 2008: the home doesn’t have any parking.
What is going to help San Francisco? We can’t build fast enough for this demand, so outlying areas will continue to increase in popularity. See Alameda, Richmond, Oakland, Mill Valley, and any city on the Smart Train to see overbids, multiple offers, and price escalation. Enter the era of the bedroom community.