Home prices remain -18.24$ below their May 2006 peak which is a considerable discount compared to stock indices such as the Dow Jones Industrial
San Francisco, CA (PRWEB) November 24, 2013
Peoples Home Equity finds through spindices.com that Bay area property values are growing fast but are not necessarily entering a bubble. Market fundamentals, such as unemployment and business growth are the key drivers of recent price hikes in the region.
The nine counties of the San Francisco bay area have shown impressive price growth since January 2013. According to the last S&P/Case-Shiller San Francisco Home Price Index readings, prices are up 21.07% since January 2013. Prices are growing at such a fast pace due to the booming amount of tech startups in the area such Facebook, Google, and Twitter, which is directly effecting the areas impressively low unemployment rate of 5.9%. Apart from low unemployment, incomes are higher than the national average in San Francisco, hence higher overall real estate prices and the steady demand for more housing leading to even higher prices. Peoples Home Equity finds that there is a link between real estate markets that are growing and lower levels of unemployment. The lender recently published a news release on November 20th, titled "Phoenix Home Prices Are On The Rise" about the growth in Phoenix home values; one indication was the lower local unemployment rate at 7.0% versus the national average of 7.3%.
Some may thing that prices for San Francisco real estate are increasing too fast. True, the S&P/Case-Shiller San Francisco Home Price Index does show that just this year, San Francisco has posted the greatest month-over-month percentage increases. The March to April period showed the largest increase of 4.87%. While prices are rising at larger levels, one must remember that prices were recently dropping the largest levels in 2008 and 2009, with the worst reading of -4.4% in January 2009. For those that suspect there is no value left investing into the Bay area think again. Home prices remain -18.24% below their May 2006 peak which is a considerable discount compared to stock indices such as the Dow Jones Industrial which is trending near 52 week highs.
Investing in San Francisco may not be for the first time home buyer due to the higher probable down payment, but for investors it may be the perfect market. Regardless, Peoples Home Equity can help anyone get a home loan at a competitive rate and possibly with a down payment as low as 3.5%. The lender even has a branch in Dana Point, California
Contact a California Peoples Home Equity loan representative today at: (949)-481-6156