July 29th, 2008
As I was checking out the local San Francisco blogs, an unfortunate blog post caught my eye. Curbed SF happened to comment on an article from Forbes that listed the Outer Sunset District as the 6th most overpriced zip code in the country. Not cool.
Outer Sunset residents – don’t fret. If you bought your home five years ago, you should be fine. But if you bought your home recently, you might be in trouble. If you need some advice as to the value of your home, contact me. Otherwise, here’s the bad news from Forbes.
…the country’s most overpriced areas are ZIP codes like San Francisco’s Outer Sunset neighborhood, 94122, which, given its location near the Pacific Ocean and on the south side of Golden Gate Park, was during the most recent boom widely thought to be up-and-coming. Median prices surged from $560,000 in June of 2003 to a peak of $771,000 in March of 2008, based on Trulia.com price data drawn from California’s multiple-listing service.
Sometimes, however, betting on price appreciation doesn’t quite work out, and when markets start to soften, speculative areas are often the first to take a hit.
San Francisco as a whole has declined 6% over the last year, but prices in the Outer Mission have declined 10%, dropping to $692,000. Based on asking prices and asking rents, though, the market still has a way to fall before reaching equilibrium.
Investors and homeowners in the other nine neighborhoods on our list are likely hoping for immunity from this trend.