[quote=profhoff]Yeah, flu, the Qualcomm price correction everyone waited for…
Yet, in SF, rents are going down and there is definitely talk of a bubble. VC money is tight and the housing blogs suggest price increases in real estate are already starting to slow down…
In LA, rents are going down, too.
And incomes certainly aren’t going up fast enough to keep pace.
So there are some definite clouds on the horizon in California!
My own theory is that there are a lot of aging boomers in NCCSD and there is no reason for them to leave. Plus, there are a lot of boomers on the younger end moving in – maybe buying that retirement place ahead of time so they can lock in the tax base now instead of 5-10-15 years from now, not to mention crazy low interest rates where jumbo is less than conventional and pretty close to 3% – and that’s putting pressure on inventory and pushing prices up.
But how high can it go? And as prices keep going up, are there really enough people with that much money?[/quote]
I am not aware of rents are going down in Los Angeles or San Francisco. According to Zillow, monthly changes in rent is 0.7% in LA and 0.3% in SF. Annual Changes are 3.8% in LA and 9.9% in SF. The pace of increase might has slowed, but I have not seen any evidence that rents are actually decreasing.
