Home prices continue to rise to astronomical heights in San Francisco. A home that was recently listed for sale in the Inner Richmond neighborhood is a near-perfect example of how bloated the market has become.
In April of this year, the mummified corpse of the home's former owner was found inside, wrapped in a blanket. The woman had reportedly died five years earlier, but her 65-year-old daughter hadn't told anyone that her mother's body was still in the home.
The deceased woman was reportedly a hoarder, and there was so much trash in the home that firefighters had to wear oxygen masks to enter. The home was listed for $928,000.
The home was built in the Victorian style in 1904. It has two bedrooms, two bathrooms, and sits on a 2,996-square-foot lot. The listing describes it as a "Major-Fixer with Peaked Roof, Lots of Vintage Charm/Details and a real News Worthy History". It’s no secret that San Francisco housing prices have shot through the roof, the home with a mummified corpse in it sold for over a million dollars.
San Francisco is also the most expensive rental market in the country. The median asking rent in San Francisco is $4,225.
San Francisco real estate is likely to see the highest growth in the nation over the next 12 months.
The US market as a whole is set to strengthen, with 90% of markets set to increase in value over the next 12 months, compared with last quarter’s 86%. The top 25 metros are also predicted to do slightly better in the year from Quarter 2, 2015 , rising 8.2% year-on-year up 0.2% on the previous quarter predictions.
Topping the list of residential property projected price rises is San Francisco-Oakland-Fremont, California, at 10.5%. The tech-fueled economic strength of the San Francisco area shows little sign of relenting. San Francisco is flush with well-paying jobs. The unemployment rate hit 3.6% in March, the lowest since late 2000, not long after the peak of the dot-com boom.
Real estate also surged during the tech boom of that era. For instance, in May 2000, San Francisco condo and home prices surged 34% and 27% year-on-year, respectively. It’s worth remembering that a bust followed that boom.
But for the record, anyone who managed to ride out the volatility and hold onto their San Francisco real estate has made out pretty well. In real terms, home prices in the San Francisco-Oakland-Fremont area of California are up 45% since December 1999.
San Francisco has a smaller percentage of children — 13.4 percent, according to the 2010 census, less than any other city in the country. Rent increases on single-family homes could further shrink that percentage. San Francisco is geared more toward people who don’t have kids or who are just wealthy investors.
Among the 100 largest U.S. metros, 63 percent of homes are "within reach" for a middle-class family. Among the 20 richest U.S. metros, just 47 percent of homes are affordable, including a national low of 14 percent in San Francisco. Within reach is a for-sale home with a total monthly payment (including mortgage and taxes) less than 31 percent of the metro's median household income.
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