for all you who think the bay area is going to crash read this.

[Jay Hinrichs]

https://www.theatlantic.com/technology/archive/201...

here is the truth !!  capitalism at work supply demand at work.. Bubble NOT.. 

[Johnson H.]

In 2017 and 2018 there were sensational articles about the exodus of folks leaving the Bay Area. This year is this one self called "data" agent that was written about in the NYT and now in this article about the all of the IPO money will drive up property prices. Dissecting this article there is no new news here. The top areas where these software developers have purchased, Mission Bay, South Beach, SOMA, Yerba Buena are all areas with significant new condo developments in the past 5 years. Young people with significant incomes and want the easy/cool downtown lifestyles and have purchased these properties. Tech companies that were not in SF before this cycle have leased up significant amounts of office space. The demand for this office space lead to one tech company signing a lease even before entitlements of an office building have been approved which is unheard of. So due to these companies moving in, there are a lot more tech workers working and now wanting to live in San Francisco.

Where do the post IPO families want to live according to the article? In districts that are majority SFH. SF is hardly building anymore new SFH so the long term trend of the value of these properties will continue to appreciate.

I continue to see multi-million dollar properties sell for all cash. I have been beaten out on my offers for SF apartment buildings for the past few years as investors continue to pay up for buildings. The last building, it was listed for $1.8M, needs $300-400k in deferred maintenance and soft story retrofit, went for $2.1M and I was surprised it didn't go higher. When folks complain about rent control and having no cash flow on buying in SF I chuckle because you build wealth owning in this city. Last year I saw a 15 unit property sell for $12 million, that's $800k a unit in a prime part of town. That is what the wealthy are investing in. 

I agree with the posters above, it is all about supply and demand. I'm sure there will be some correction some day and in other parts of the nation, there does seem to be a slight pull back. It seems like every other day for the past two years there is some article from some investment professional/economist saying that there will be a recession 18-24 months. All I know is that if you purchased property in SF at the top of the market in 2006, you may have had a bad time in 2009-2012 but now you would be sitting pretty with some great gains and high rents. There was a slight chill in our market in Oct/Nov last year but things picked up after Thanksgiving and now with these lower rates, it is looking like a great spring again. Although there have been articles about supply increasing, what the articles don't mention are the months of supply which is still very low and even lower if you remove condos out of the equation.