Bay Area real estate markets are affected by an enormous mix of economic, demographic, social, political, and environmental issues – local, national, and international – all constantly interacting with each other.
KEY MARKET INFLUENCERS
The Bay Area remains the high-tech capital of the world during a period of high-tech boom, and a major economic and cultural center located in one of the most beautiful settings on the planet
Interest rates, which have a huge impact on affordability whether rising or declining
High stock markets: vast wealth creation (for some)
Highest state income taxes in the nation; increasing anti-business environment
Negative domestic migration; plunging foreign immigration; business migration
Debt levels of all kinds at fantastic, all-time highs, albeit currently at extremely low interest rates
Local quality of life issues (cost of living, crime, commute, homelessness)
International instability/conflict/ hacking
EVENTS CAUSING SIGNIFICANT NEGATIVE MARKET ADJUSTMENTS IN THE PAST
Financial market crashes caused by irrational investor exuberance, runaway societal greed, dangerous over-leveraging of investments, and/ or irresponsible and dishonest financial engineering such as junk bonds, collateralized debt obligations and subprime lending in the late 1980’s, late 1990’s, & 2006-2007
International economic events such as the Chinese stock market crash, oil price crash of 2015-2016
International political events such as the Yom Kippur War leading to a Mideast oil embargo in 1973 or 9/11 occurring in 2001
Sudden, significant increases in interest rates that occurred in the early 1980’s and 2018
Runaway inflation that happened in the late 1970’s and early 1980’s
Natural disasters in 1989 and 2020 r Consumer reaction/fatigue due to sudden, extreme increases in home prices
In summary, it is extremely difficult to predict the timing or magnitude of market cycles either up or down. More often than not, significant downturns in the market are caused by unexpected events and unforeseen crises.
All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by San Francisco Examiner.
All information should be independently reviewed and verified for accuracy.
Properties may or may not be listed by the office/agent presenting the information.