Sunday, November 22, 2015

This Will Bust San Francisco’s Insane Home Price Bubble

Just insane!  I can't think of a worse time to try to buy a house in SF!!  Median condo price of $1.1 million??
About 59,000 housing units are under construction or in the planning stages, based on the SF Planning Department’s new Q3 report. They’ll come on the market over the next five to six years to increase the city’s housing stock of 382,000 units by over 15%. About 3,500 units already came on the market in 2014. This year, even more units are coming on the market. In 2016, the floodgates will open. And mostly expensive units.

But that’s just the near-ish term. There are three additional mega-construction projects in the pipeline that will take a little longer: Park Merced (5,700 units), Hunters Point which includes the contaminated Navy shipyards (10,300 units), and Treasure Island, also a former Navy site with radioactive contamination, a scandal I wrote about in 2012 (7,800 units). With these projects, the housing supply in the pipeline jumps to over 82,000 units.
I don't see this ending well at all!

This happened in Florida during the last market collapse.  That was horrible.

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