The state of real estate market in San Francisco became so ridiculous that many building companies are abandoning this are and searching for better and less volatile real estate market elsewhere.
A big billboard only confirmed the ridiculousness of the market as it showed great deal, a house that has 3 bedrooms and 2 baths and it sprawls on “staggering” 1 500 square foot and this house can be bought for only 1 million dollars. This price would be acceptable if the house was near the center of San Francisco, or even near some of the more popular neighborhoods.
But this house is far from there, it is in Lake Merced area which is far from everything important. One of the development websites said that by buying this house you will take in the lifestyle of San Francisco and you will leave its limitations behind and after a day of work you will go back to the peace of your quite neighborhood.
What he meant is that you will live outside the San Francisco, but you will buy a house whose price is far above its real value.
Another house near previous property is also on special offer. This house has 3 bedrooms and 3.5 bathrooms and its size is 2 400 square foot, and for only 1.7 million you can have it. I have to stress that 1.7 million dollars is its listing price, and as the trend goes, majority of the real estate in San Francisco area is selling above the listing price
A “shack” that was built after big earthquake in 1906 was sold for over 400 000 dollars. If this building was in any average condition it might be conceivable to pay that much, because this one –story building is a part of history. But this building is not in that condition. The condition of the building is terrible, it is not safe and the owner will have to invest a lot of money to bring it back from the ruin.
One more thing, this building is only 765 square feet, so you can see what kind of prices are in San Francisco.
All the prices I mentioned are for the property that is on the edge of San Francisco area. As you go toward the center of the city and near more known landmarks prices skyrocket. For example, a house that has only one bedroom and 2 bathrooms located near AT&T park costs around 2 millions. And that is only its listing price.
If you want a house whose price is greatly reduced then you might want to look at the 3 bedrooms/ 2 baths house in Mission Dolores that costs only 2.6 millions.
If you compare prices of the property in the San Francisco area with the prices from 5 or 6 years ago you will notice that the price increased well over 100 percent and it is still rising. Every year the price of real estate in and around San Francisco goes up 10 to 11 percent.