December 7, 2017

San Jose and Santa Rosa Are Currently Considered Overvalued

CoreLogic's latest Home Price Insights Report examines real estate values in the Bay Area and offers five-year projections.

  • Home prices grew by 7.6 percent in California and 7.9 percent in the San Francisco metropolitan area on an annual basis in October.
  • The San Francisco, San Rafael, Napa, Vallejo, and Oakland metro area housing markets are currently considered within their normal value ranges, while Santa Rosa and San Jose are overvalued.
  • By 2022, all Bay Area housing markets except San Rafael are projected to be overvalued.

 

Despite the high cost of purchasing a home in the Bay Area, most local markets are still within their normal value ranges, although that is not projected to be the case five years from now.

That’s according to CoreLogic’s latest U.S. Home Price Insights report, which says that U.S. home prices grew by 7 percent year over year in October. Appreciation in California and the San Francisco metro area outstripped the national rate, growing by a respective 7.6 percent and 7.9 percent. In a statement accompanying the report, CoreLogic Chief Economist Frank Nothaft noted that the national home price has grown in excess of 6 percent for four straight months, the longest such streak in more than three years.

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About The Mark Company

The Mark Company is one of the nation’s premier urban residential marketing and sales firms. Founded by Alan Mark in 1997, The Mark Company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States. The firm is a trusted partner to global leaders in residential development and finance, providing buyer-driven sales and marketing strategies that produce industry-leading results. The Mark Company has represented more than 10,000 residences and generated over $5 billion in sales for some of the nation’s most notable and successful developments including The Infinity in San Francisco, Evo in Los Angeles and The Martin in Las Vegas. Current projects include 181 Fremont Residences and The Austin in San Francisco and Cavalleri in Malibu. The Mark Company is a subsidiary of San Francisco-based Pacific Union International, the eighth-largest residential real estate brokerage in the U.S. based on 2016 sales volume of $10.15 billion. Pacific Union merged with Los Angeles-based brokerages John Aaroe Group in December 2016 and Partners Trust in August 2017. This strategic business collaboration links four of the strongest residential real estate firms on the West Coast, supporting combined 2016 production of $12.6 billion by 1,400 real estate professionals in 47 offices throughout California. For more information, please visit www.themarkcompany.com.