B'game (and H'borough) Are #9 in Real Estate Value

Remember the days when a healthy and growing real estate market was viewed as a good thing?  Before the envy merchants started hogging the headlines?  Me too.  So let's just note that 94010 is healthy and growing.  The Chronicle piece on Bay Area median prices puts our burg and the one "up the hill" that we share 94010 with at #9 in the Bay Area and #19 in the nation.  The median price thus far in 2019 was $2.63 million and the article notes we get a boost from the H'borough prices, but from what I've seen many sections of B'game are on par with sections of H'borough as people appreciate the walkability and bikeability of being close in.  But somethings don't just go up all the time though.

Although the Bay Area continues to dominate the PropertyShark rankings, it hasn’t been immune to a slowdown in housing prices. Of the 46 Bay Area ZIP codes that were on its list both this year and last, 25 went down in price, 19 went up and two were unchanged, according to a Chronicle analysis.  In a separate report issued Monday, the California Association of Realtors noted that the Bay Area has posted year-over-year price declines for nine consecutive months and 10 of the last 11.

Linking two rankings together we can also look to the San Francisco magazine annual Top 100 realtor rankings by sales where B'game is well-represented:

1            Stanley Lo        $304M

8            Phil Chen            $169M

30            Raziel Ungar        $100M

38            Jim Arbeed        $93M

39            Sandy Camaroto    $93M

67            Mike Bohnert        $72M

There is no telling what 2020 will bring, but with interest rates staying quite low, but not dropping from here and demand up, up, up the real question remains "Where will the water come from to supply all the new construction?"

 

Comments

[Joe]

You just have to love people like this Chronicle opinion piece author: TJ Lane is a scientist at SLAC National Accelerator Laboratory in Menlo Park.

https://www.sfchronicle.com/opinion/article/Myth-of-the-Silicon-Valley-garage-and-loss-of-a-14857599.php

"New housing is often objected to on the grounds of “preserving the character of the neighborhood.” But opponents of development never specify exactly what character they are fighting so hard to preserve. By not allowing new housing, the true character being preserved is that of entrenched privilege. At the same time, another character is all but lost. The character of the garage. That this place — Silicon Valley — can be where you come to quit your job and take time to play with your wildest ideas."

This is exactly what I am talking about when I describe "envy merchants". His "entrenched privilege" is what used to be known as pride of ownership in someone's largest investment. Now those who don't want to or can't make such an investment somehow figure they are still entitled to live here. THAT is "entitlement privilege".

And if TJ Lane cannot figure out "exactly what character they are fighting so hard to preserve" he must be selectively illiterate and deaf. Human scale development with walkability, neighborliness and trees ("City of Trees" style) along with good schools and a responsible local government with solid police and fire. I could go on for another 20 minutes, but people like TJ Lane don't want to hear it. They just want the heavy hand of the government (e.g. Scott Weiner) to give them stuff.

[Joe]

One more thought on this person's confused opinion. His main premise is that the Silicon Valley petri dish that is responsible for so much innovation is at risk because more and more and more people cannot live here. Good thing he is a SLAC scientist and not an analyst, venture investor or entrepreneur because he completely misses the main risk to innovation in the Bay Area--the risk that this will be a less desirable place to live than other innovation centers (i.e. Austin, Mass 128, Seattle (not likely as they are more messed up than we are)).

The quality of life aspects far outweigh the cost of living aspects for real innovators. Many of them are on their 3rd, 4th or 5th plays and can live anywhere but they choose to live here until the politicians and envy merchants screw it up too badly.