In May the San Francisco index was up 15.4% year-over-year, this has recently slowed.
Chicago, IL (PRWEB) October 09, 2014
While stocks sold off on Thursday, Peoples Home Equity was pleased to see initial and continuing claims reported better than expected. Claims data was especially well received after Friday’s unemployment report.
Peoples Home Equity was intrigued by a recent October 9th CNBC release titled “San Francisco housing: Time for a correction?” Readers should note that San Francisco real estate prices have been rising due to the high concentration of technology money in the area. Companies like Apple, Facebook, Google, and Twitter are all headquartered around the city. The article highlights the possibility of a cooling San Francisco housing market, which may be a relief to prospective home buyers and or tenets.
Peoples Home Equity has highlighted San Francisco as a year-to-date top performing city before in its July 29th release titled “S&P/Case-Shiller Home Price Indices Gain In May.” In May the San Francisco index was up 15.4% year-over-year, this has recently slowed. The latest July index reading shows a slowing of growth. The index shows July 2014 as 195.1 which is just 10.3% above July 2013’s level. Probably not a correction, but Peoples Home Equity does see a possibility of a slowing market in the city is the Fed raises interest rates or equities sell off more.
Nobel laureate Robert Shiller, co-author of the indices told CNBC "It's their comeuppance," he continued "They were the most bubbly city. It's time for a correction." CNBC states “Prices may cool a bit, but not by much, simply due to the fact that San Francisco is a city of perpetually limited inventory.” In addition the article states that San Francisco’s economy is “also incredibly strong, compared with the rest of the nation, so while the sky may not be the limit for prices, they will likely continue to be sky-high.”
For those thinking to purchase a property in San Fancisco, one must be well prepared with a prequalified mortgage. To quickly find out if you qualify for a home loan contact a friendly Peoples Home Equity loan officer today at: 262-563-4026