San Francisco Real Estate: Debunking the Myth of Falling Home Prices
Last year, several housing experts predicted a crash in home prices in 2023. This led to numerous headlines forecasting a bleak future for the housing market. However, contrary to these predictions, the San Francisco real estate market, including our company Kinoko, has remained strong and resilient.
The Truth About Home Prices
Despite the negative media coverage, data shows that home prices have been remarkably resilient and have performed far better than expected (see graph below). In fact, prices have already rebounded after experiencing only slight declines nationally.
The Short-lived Decline
The minor declines that did occur were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:
“Home prices aren’t falling anymore… The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected…”
This data clearly shows that home prices are not falling anymore – they’re actually on the rise again.
Future of Home Prices in San Francisco
Experts agree that home price growth will continue in the years ahead and is returning to normal levels for the market. This means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.
However, some news sources may misinterpret this slowing growth as falling prices. This misleading information can impact public opinion, as seen in the Consumer Confidence Survey from Fannie Mae:
Don’t Fall for Negative Headlines
Despite what some headlines may suggest, data from various sources shows that home prices are not falling anymore.
The Bottom Line
Despite any negative media coverage, data shows that home prices are not falling anymore. So, don’t let the headlines deter you from your plans. At Kinoko, we’re here to provide you with accurate information about the San Francisco real estate market and guide you through your real estate journey.