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December 2017   Volume 43, Number 12      
 

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San Francisco Most Over-valued Market in U.S.

According to the UBS Global Real Estate Bubble Index released last month, which includes twenty of the globe’s largest cities, San Francisco is the most overvalued real estate market in the United States as home prices have outpaced the rest of the country by 260 percentage points over the last 40 years.

The report also mentioned that a slowing of home price growth in San Francisco hasn’t resulted in any improvement in affordability issues in the area, as income growth has failed to meet the cost of living. Since 2011, real house prices in the metropolises that fall within the bubble-risk zone have increased by nearly fifty percent on average, according to the report.

“This gap is grossly out of proportion to the differences in local economic growth and inflation rates,” read the report.

The Swiss financial services company composed the index in order to track the risk of housing bubbles in international financial centers. Although several international cities ranked ahead of the U.S. cities for being overvalued, Los Angeles was the only other U.S. city named in the report as overvalued. Boston and New York City are fair-valued according to the index. Chicago was the only U.S. city considered to be undervalued.

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In this issue:

Homebuyers Rush to Riskier Mortgages As Home Prices Rise

Amazon Ventures Into Real Estate With Hire a Realtor Service

Digital Real Estate Platform Home61 Raises $4 Million

Homebuyers Can Now Crowdfund Their Mortgage Down Payments

Millennials Going Over Budget to Buy Homes

National Flood Insurance Program Might Not Be Able to Fulfill Obligations to Homeowners

San Francisco Most Over-valued Market in U.S.

Trump Tax Reform Sparks Fears for California Realtors

Weekly Mortgage Applications Stall Along With Rates and Home Sales

10 Reasons to Schedule a Seller Counseling Session



 


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