Fitch Ratings, the New York global credit rating agency, reports that San Francisco Bay is experiencing a house price surge that is now unsupportable by the area’s income levels. Figures from Fitch’s latest US sustainable home price report indicate that San Francisco house prices reached an all-time high in Q3 2015, up an overall 10% in the past year; 62% above the post-recession low of early 2012. Furthermore, the San Francisco housing market is now around 16% overvalued. The current bubble has been fueled largely by investors who have bought homes at inflated prices, and then sold them for much less than they were worth. Experts cite the booming technology industry as the key factor in this recent price surge although, as yet, it is not thought to be a cause for alarm.
Fitch Ratings, the New York global credit rating agency, reports that San Francisco Bay is experiencing a house price surge that is now unsupportable by the area’s income levels. Figures from Fitch’s latest US sustainable home price report indicate that San Francisco house prices reached an all-time high in Q3 2015, up an overall 10% in the past year; 62% above the post-recession low of early 2012. Furthermore, the San Francisco housing market is now around 16% overvalued. The last time the Bay area experienced such growth was reportedly during the dotcom era of 1997-2000. Experts cite the booming technology industry as the key factor in this recent price surge although, as yet, it is not thought to be a cause for alarm.