Categorized | Residential

San Francisco Housing Market Struggles Despite Strong Demand

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Although mortgage rates are at record low levels, they are simply not a viable option for many potential homebuyers in cities like San Francisco. With increasingly stringent restrictions as to who can qualify for the incredibly low mortgage rates, many of those that would like to buy a first or second home have had to defer their dreams.

While many buyers wait for low-rate mortgage loans to become less restrictive and more widely available, the housing market in San Francisco continues to suffer. Sales dropped to more than twenty percent below their average levels last month, and the numbers are expected to remain low until there is better financing options across the board.

Residential real estate analysts are reporting that demand among potential homebuyers is actually increasing, but the limited financing options are making it impossible for many potential buyers to make a purchase. As such, those that want to buy are forced to wait. As overall home sales decrease, the average price on homes decreases as well, further damaging the residential real estate market.

The current decline being experienced in the San Francisco housing market comes on the heels of reports that the widely advertised record low mortgage rates are not nearly as beneficial as they have been hyped to be. The reality is that restrictions put in place by the major lenders have made it virtually impossible for the majority of potential homeowners to buy a new home. Many smaller lenders have fled the market, leaving potential homeowners with very limited mortgage financing options.

With that said, residential real estate markets like that in San Francisco are struggling with decreased sales despite increasing demand.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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