San Francisco, CA (PRWEB) October 08, 2012
Vi Pavlicevich, San Francisco real estate expert blogs that San Francisco Assessor-Recorder Phil Ting stated that the raise in property value in the City is one of many indicators that the real estate market is rebounding. Pavlicevich states: “Because San Francisco has the most expensive apartment rental market, if you can afford to rent, you can definitely afford to buy.”
New property developments and technology sector jobs have contributed to the rising property values. It is estimated that the boost in assessed values will likely add $10 million of additional tax revenues, which signals a strong San Francisco economy. The City is expected to have the second-biggest year in commercial real estate sales – more than $5 billion.
Also noted is the increase in prices of luxury homes in the Bay Area, which presents much needed optimism since the real estate market bust in the 2000s. According to the First Republic Prestige Home Index, the average luxury home sell price in San Francisco is now at $2.67 million.
Phil Ting also gives credit to the decreases in the number of “underwater homes” – when mortgages exceed the home value – throughout California. San Francisco County has the lowest number of homes with negative equity, at 14.0%, as the rates in surround counties, Alameda and Contra Costa, are over 30.0%.
While the news of higher home prices might scare off future homebuyers in the city, San Francisco still holds the most expensive apartment rental market. Buying makes even more sense now because rent payments can equal mortgage payments, without the accompanying increase in equity.
And interest rates are at all-time lows. As of October 4, the latest report from the Mortgage Bankers Association shows that the average rate for a 30-year fixed-rate mortgage declined 9 basis points to 3.45 percent in the last week. At the same time, the purchase application volume increased 4% and the refinance application volume increased 20% over the same period.
Inventories in the desirable condominium market are up from last month, and time on the market has decreased. This adds up to a real estate market that is heating up.
Many indicators make it easy to arrive to the conclusion that the San Francisco real estate market is improving, and is drawing in savvy buyers to take advantage of the favorable market.
About Vi Pavlicevich San Francisco Real Estate Expert
Vi Pavlicevich, real estate agent at broker ClimbSF, is known for her understanding of the San Francisco real estate market and being a staunch advocate for her buying and selling clients. Her website http://sanfranciscorealestateexpert.com contains the latest information on events that affect the market, as well as the newest listings in the desirable waterfront condominium developments. Click on “Chat Live!” to reach Vi directly.