Last week Case Schiller reported that property values in San Francisco were up 23% with the 20 city composite up 13.2% over the last year.
If you live in the San Francisco Bay Area, it is not hard to realize that prices are up. In some areas, the average home sales are actually higher than at the 2008 peak levels.
Despite the robust reporting from Case Schiller, there are some mixed thoughts about the market. The San Francisco and into the East Bay have seen a strong sellers’ market in some of the most desirable areas with workers in the tech sector buying up homes. A slowdown in appreciation does not mean the bottom is falling out. Just means that we have a more stable market with more buyers able to compete.
In a Biz Journel Article Stan Humphries, chief economist at Zillow states "Today's Case-Shiller numbers actually do represent a bit of moderation for the venerable index. The real pace of gains is probably really half that being reported, but the big picture remains the same: the housing market is doing quite well.
"We remain far from normal in terms of appreciation rates and negative equity rates, but we're getting there," Humphries said. "A slowdown in appreciation is welcome."
It will be interesting to see what this Spring market looks like. Inventory is still pretty thin with competition still fierce for well priced properties in desirable areas.