It’s Forbes’ opinion that San Francisco home values are on track to increase 14.3% by 2011. On the flip side, they’re predicting an 8.3% drop in prices by next June. Apparently, we have to work through all our foreclosures before things start heading up.
But is this foreclosure wave really ever going to arrive—to the extent that all the buyers who’ve been waiting for “deals” on their centrally located dream houses in San Francisco are finally satisfied?
There might be steady foreclosure or short sale offerings in the more affluent areas (see The Chronicle’s article on the subject). But for one thing, there aren’t many people out there buying properties for above $1M. Additionally, those who are buying properties in the below-$1M range all seem to be competing for the same homes. What would those be? The 2BR condos or single-family homes in walkable neighborhoods that don’t get too much fog and are near public transportation or freeways.
And there never seems to be enough inventory to meet these demands.