It’s been sunny and breezy in San Francisco of late – but that description doesn’t apply to the real estate situation in the city by the Bay.
Over the past few years, as foreclosures have hit record levels throughout the state, homes in San Francisco have enjoyed some bragging rights – though foreclosures dotted the less-affluent areas surrounding the city, San Francisco proper remained relatively foreclosure-free. Real estate analysts credited geographic limitations, rigid building codes, and already-astronomical costs of living for the fact that only renters and the very rich could live in San Francisco at all, thus lessening the likelihood of foreclosures.
But it looks like that’s no longer the case. SFGate.com recently reported that the number of foreclosures within the city of San Francisco has definitely risen. In fact, San Francisco foreclosures have increased while foreclosures in the rest of the Bay Area have actually dropped.
Foreclosures are even creeping into posh-and-pricey neighborhoods like Pacific Heights, though the majority are in neighborhoods like Twin Peaks and Glen Park, where prices are high but not jaw-droppingly so.
Though this trend sounds alarming, the explanation may be surprisingly straight-forward. Lower-income families living hand-to-mouth under the shadow of unrealistic sub-prime mortgages were the first to succumb to foreclosure. Those homeowners with better income-to-mortgage ratios, or savings put away, are only now starting to buckle under prolonged economic strain.