|By PR Newswire||
|November 9, 2012 02:35 PM EST||
LOS ANGELES, Nov. 9, 2012 /PRNewswire-iReach/ -- Sports fans in San Francisco couldn't be happier, as their baseball team just won their second World Series in a three year time span. But Giants' fans aren't the only people who should be happy in the Bay Area. According to recent statistics, property owners in San Francisco also have something to smile about! Eight times each year, the Federal Reserve publishes the "Summary of Commentary on Current Economic Conditions", better known as the "Beige Book", which gives an economic snapshot of all 12 Federal Reserve districts -- including San Francisco. The "Beige Book" came out in mid-October, and it indicates that the residential real estate market in the metropolitan San Francisco area is recovering much quicker than in other cities across the country. For example, the median sales price for a home in the Bay Area continues to rise, and in September, it hit its highest level in more than four years. In September 2012, the median price in the nine-county area climbed to $429,000. That's a 17.5% increase from September 2011, when the median was $365,000.
Job growth and low interest rates are also bringing more buyers into the area. The unemployment rate around San Francisco has fallen to 7.4% -- down from a high of 10.1% in January 2010. With more buyers eager to purchase a home now so they can take advantage of the all-time low interest rates that are available, there is a shortage of homes for sale in the Bay Area. While that's bad news for buyers, it's good news for sellers. After all, with fewer homes available on the market, sellers can raise their listing prices. And speaking of fewer homes on the market, San Francisco also is leading the way in foreclosure reduction. Last week, it was announced that foreclosure filings in the San Francisco area fell 36% when compared to the same time period last year. A big part of that comes from investors who are purchasing foreclosure properties and fixing them up to rent, instead of reselling them once the needed repairs have been made. But residential properties in San Francisco aren't the only hot commodities in town. Commercial real estate is also seeing a boom in the Bay Area. Kilroy Realty Corporation is building two new skyscrapers in town, and their CEO says they already have interested clients wanting to lease space in the buildings. The first, a 400,000 square foot, 27-story project, will break ground in the first quarter of next year, and construction of the second building should get underway in late 2013. In an interview with San Francisco Business Times, the company's CEO, John Kilroy said, "I can tell you I do not believe in the trees growing to the sky. But I have never seen so much visible demand from such a diverse group of people as I have seen in San Francisco and the Bay Area right now." With so many interested clients, but limited commercial space, the demand outweighs the inventory at this time, so economists speculate that Kilroy won't be the only company building commercial properties in San Francisco in the months and years to come. What does all this mean? If you're looking for a home in San Francisco, expect to pay more. If you own a business that is looking to move to the Bay Area, or relocate within it, also expect to pay a pretty penny. And finally, if you're a seller -- of either a residential or commercial piece of real estate -- you may be able to cash in on the high demand in the area and make more money than you initially hoped or planned when selling your property.
Media Contact: Daniel Torelli RealtyPin.com, 514-836-1432, [email protected]
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