Well just when you thought San Fran had gone up all it could, it shoots up again.
"Housing analysts are split over whether California is forming a housing "bubble" as home prices in the state have nearly doubled since late 2001, pulling prices up in the San Francisco Bay area even while it struggled to emerge from the long high-tech slump.
California's rising home prices have been propelled by home buyers snapping up low long-term mortgage rates and adjustable-rate and interest-only mortgage loans."
This article also repeats the often cited yet clearly wrong conventional wisdom.
"Bullish analysts counter California's population is growing rapidly amid a persistent shortage of housing, which will add upward pressure to home prices."
Calfornia's population may be growing but California's home buying population is not. Given that 85% of the people in California cannot afford to buy in this market how can they put pressure housing prices? They cannot. More importantly the population growth isn't coming from people who will ever afford homes in California - Starbucks Baristas do not buy homes. They cannot afford it.
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