The San Francisco real estate market continues to go gangbusters, and many people are wondering if we’re heading for another housing bubble. It wasn’t long ago that we experienced a housing boom in the city, only to see it break down from 2008-2011. And as buyers agree to pay crazy prices that comparative sales don’t support—waiving appraisal contingencies along the way—things start to feel, well, kind of creepy.
I was recently interviewed for a CNBC story on the subject, “Housing Market: From Recovery to Bubble—Already?” by reporter Kristen Scholer. No, I really wouldn’t be surprised if another bubble is forming, as I state in the story. But interest rates are steadily rising, and it’s quite possible that some buyers will pull back a bit and not be so ready to throw unreasonable amounts of money at properties.
Read the CNBC story here, and take heed if you’re a buyer who’s out there looking to make a purchase. Do your due diligence, don’t be so quick to waive contingencies, and above all, take a long, hard look at comparative sales and be smart in your decision making.