Undervalued? SF Bay Area Real Estate According to Two Top Research Firms

June 27, 2022

Real Estate

Is San Francisco Bay Area real estate undervalued? Maybe.
 
At least, that’s what big-time analysis firm CoreLogic says in this ominously titled Fortune article: Keep an eye on these ‘overvalued’ housing markets as the housing boom implodes
 
It’s an interesting look at which of America’s housing markets may be over- or undervalued, and where home prices could fall this year. On both counts, the picture painted of SF Bay Area real estate is relatively rosy: Undervalued, with a low chance of prices falling.
 
Another analysis—this one by Moody’s—reports SF-Berkeley-Oakland homes as overvalued by 6%. Less optimistic, but still downright quaint compared to ludicrously hot markets like Austin, TX (41% overvalued), or Boise, ID (73%).
 
Ultimately, it comes down to what homes cost vs. what folks are willing and able to pay. In the last year, national home price growth (+20.6%) has far outpaced income growth (+4.8%). That alone is not sustainable, to say nothing of significantly higher mortgage rates.
 
In the SF Bay Area, an abundance of wealth, good-paying jobs, and less “pandemic relocation / home buying mania” has helped to moderate the market, but we are seeing some cooling effects here too.
 
Realistically, some local real estate may be undervalued, and some may be overvalued. Generalizations like those in the articles above, even from two of the biggest research firms around, only go so far.
 
In this complicated market, experience and tenure matter. Over 20 plus years, we’ve navigated the undulating and sometimes rocking waves of SF real estate. It’s not our first rodeo, and we are here to guide you.
 
As always, the best time to buy, sell or both is when it makes sense for you. If you have a question, or if you or someone you know can benefit from trusted real estate advice, please don’t hesitate to contact us.
 
We are happy and grateful to be of service!
 
Warmly,
The Vivre Real Estate team
 

Bay Area Real Estate Updates

 
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Off the Presses


Articles Featured in the Vivre Real Estate Newsletter


What Goes On Behind the Cameras at Home Makeover Shows? – NYT
 
Data shows home prices still skyrocketing in migration hotspots – but not in this CA city – SF Chronicle
 
A House With ‘Good Bones’? ‘Original Details’? It Could Be a Complete Wreck. – NYT
 

JOIE de VIVRE


Events, Community & Things We Love


LGBTQ+ Film Fest
 
The longest-running, largest and most widely recognized LGBTQ+ film exhibition event in the world returns June 16–26. See what’s playing and get tickets for the San Francisco International LGBTQ+ Film Festival.
 
Juneteenth Block Party
 
Saturday, June 18 from 11am–6pm, the Fillmore is transformed into eight city blocks of Freedom Celebration. Family-friendly entertainment includes a Ferris wheel, pony rides, soul food, car show, and even an obstacle course. Register free.
 
North Beach Festival
 
Claimed as the country’s first free street fair, the North Beach Festival is now in its 66th year. Visit on June 18 and 19, 10am–6pm, for a slew of vendors and tasty food, Italian street art, live music and more.

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