Housing Market in San Francisco Getting Out of Control

Two weeks ago, my sister-in-law a resident of Palo Alto visited us. During her visit she told us of the experiences of her daughter and son-in-law who had been searching for a home in the city for the last 4 months. Both her daughter and son-in-law work in the City by the Bay(SFO). Ideally they want to purchase a home within biking distance to the place where they work. Her son-in-law works for Google, and her daughter has a private practice as a Registered Social Worker and Counsellor.

Their original plan was to purchase a 2-bedroom, one bath house within biking distance to Google. They found one and offered $150,000 more than the asking price. They were out bided. According to the their real estate agent there were 6 other clients who put bids on the property.

This experience made them change their plan and searched for a 1 bedroom, one bath home. They found one and again bid $150,000 over the asking price. Again they were out bided. There were more than a dozen clients who bided for that home my sister in-law emphasized. Today they have stopped their search and hope that their landlord will not increased their rental soon. This illustrates that the Demand is more than the Supply, thus the skyrocketing prices.

I found two recent articles on the Internet on this subject. I am posting it for your reference and reading pleasure.

1. http://www.businessinsider.com/why-housing-is-so-expensive-in-san-francisco-2014-4

2. https://www.mysanantonio.com/technology/businessinsider/article/San-Francisco-housing-is-so-expensive-that-12729885.

Here's a video comparing the Housing Situation in New York City and the City by the Bay: https://www.youtube.com/watch?v=hU0LtQO8GnI

Final Note: My grand daughter working in San Francisco is renting a 2BR condo in a high rise building within walking distance to her office at EERO. She pays $4000 a month, but shares the rent with a condo mate, otherwise she will not be able to afford it.

Future Blog: Two millionaires in my wife's family because of real estate in the right location!