All Forum Posts by: Alexi Schreier

Hi Raj,

You may find this article interesting:

http://kalw.org/post/bay-area-housing-bubble-or-ho...

The appreciation we're seeing in today's market is different from the pre-2009 days. As @Amit M. said, "lending is tight". We aren't seeing nearly as many low income households buying properties they can't afford. SF real estate is estimated to be only 12% over-valued in the current heated market while it reached a 50% overvaluation during the last housing bubble.

The issue is with supply and affordability. Since the supply is too low, prices are being bid up and making it difficult for the middle-class to buy. We need more development in the Bay Area but it's tricky because construction regulators are strict here. Hopefully the high appreciation we've been experiencing and influx of foreign investors parking their money in the Bay Area (SF, Oakland, San Jose) will encourage development.

I'd be curious to hear what @J. Martin has to say about all of this.