Will these 2 Forces Crush San Francisco’s Housing Bubble?

Jon Economy

The signs and numbers are already lining up. According to Federal Housing Finance Agency data on our glorious Housing Bubble 2, house prices are doing what they’ve been doing for years: they’re surging. In the first quarter, they rose 6.0% year-over-year.
‘The steep, multi-year rise in U. S. home prices continued in the first quarter,’ explained FHFA Deputy Chief Economist Andrew Leventis on Wednesday. So house price are going up everywhere. Well not, everywhere.
In the once hottest metropolitan statistical area where house prices have surged in the double digits for years – San Francisco, Redwood City, and the city of South San Francisco which make up the tip of the Peninsula – was the sole exception: there, house prices fell 2.5% in Q1 year-over-year.

This post was published at Wolf Street on May 25, 2017.