According to this morning's report on KQED, Bay Area apartment rents are down to their lowest levels since 1999. However, I also recently heard that Bay Area housing prices are still on the rise. In fact, prices are up 12% from this time last year.
Does this strike anyone else as being odd? Perhaps we should start tearing down apartments and building houses...
Posted by jzawodn at October 17, 2002 08:36 AM
"pop pop fizzle fizzle." This may be an indication that bay area residents are paying too much for their homes and once the interest rates once again rise, and demand decreases, we will also see a slight decrease in the price of homes. I'll take a wild stab in the dark and estimate that my $515,000 home will worth approximately $500,000 when the bubble bursts. Not a dramatic change although, a stagnant price point for who knows how long.
As housing prices continue to rise, rents will continue to go down. Should the "bubble" burst, owned homes will decrease in "value" on the order of 10% but rents will start inching up.