According to Bloomberg news, home prices within the city of San Francisco have actually dropped more than have home-prices of homes in the Bay Area as a whole. Obviously this is a little anomalous – no matter where you are, those who can afford to buy in a major urban area tend to be somewhat more resilient when it comes to questions of economic downturn – that is, rich.
This economic downturn is a little different from past scares, as we’ve all noticed by now. It’s probably still, objectively, a great time to buy – but there are just too many factors at work. People who might see a huge opportunity in low prices and low mortgage rates are taking other things into consideration – like the unstable job market, for starters – and staying put.
It’s ironic, of course, that as the financial world becomes more and more abstract and automated – online banking and robo-signers, etc – more and more people are developing a more conservative, dare-we-say Depression-era mentality about what to do with their money. Rather than leap in while prices are low and blood is running in the streets, they’re clutching their bank accounts and shoving metaphorical cash under a metaphorical mattress.
Basically? If you want to live in San Francisco for a while and you have some form of security, your best chance is probably now. It’s tempting, isn’t it? But for most of us it’s just not tempting enough.