Median home price in SF 1.6 million!
Up 25% in the last year. Where are the crash callers ? Lol! At this pace people may double the housing prices every 3-4 years and keep upgrading ! This is worse than the chasing in stock market, but for now the FOMO is real !!!
Woohoo!
Interest rates are rising...stock market is all over the place. Anything could happen.
What’s our best bet here? Should we buy house or not?
Buy! You will probably have an option to sell for 30-40% profit before we see even a minor drop. And that can happen next year. FOMO is just beginning. Low inventory and rising interest rates will force buyers to take more debt and give every penny they have. Demand is very very high!
Who cares, be quiet and make big money
I can literally rent the same property for 2-3K less a month without the headache of owning, HARD pass!
Do you only plan to live here for less than five years?
If you bought in SF for $1M in 4Q 2007, your House was worth $1,445,012 in 4Q 2017. A 44.5% increase over ten years is just 3.75% appreciation per year. (Source: HPI Calculator on fhfa.gov. Check my math please!) So one way to look at it is yeah it’s been going up like crazy lately but it has only recently finished recovering from the 2008 recession. I’m not saying it will keep going up fast. I’m saying don’t look for a crash.
Here is the chart. You aren’t back to your purchase price until Q2 2013, more than five years after your purchase date.
Also that crash was subprime mortgage, so housing was affected the most. The next crash is unlikely to be mortgage related so housing prices won’t be affected as much.
1 bedrooms on the other hand dropped
The next recession it will drop again. NYC luxury apartment is already going down
OP sounds like the Snapchat guy who kept hyping Bitcoin saying it was going to go to 100k.
Expect a major correction in the next 18-24 months - lender here
So many hope that you are right, but probably people will be saying the same statement in 2 years. Bay Area market has no reasons to drop and a gazillion reasons to keep going up.
So should we buy now or not?