SAN FRANCISCO (KRON) – Housing prices in the Bay Area are far from “affordable,” as many know. But new data suggests prices in the Bay may even be “undervalued.”
An article by Fortune Magazine says two-thirds of the nation’s housing markets are “overvalued,” particularly in places like Austin or Charlotte. But the Bay Area is considered undervalued.
Alexandra Stein, a realtor with Corcoran Global Living, says the high-paying tech industry keeps boosting real estate prices.
“Companies like Apple are now offering bonuses because they don’t have enough engineers, so when you see that type of money that’s being thrown around it makes sense the housing market is still ticking up,” she said.
Despite rising mortgage rates, as the federal government tries to put the damper on inflation, Stein says there are still bidding wars for houses selling for 2 or 3 million dollars in the Bay Area.
“For people that are still trying to get into that million and under market it doesn’t really exist,” she said.
Stein says as long as the area has good weather and a thriving tech industry, there will most likely be an increase in prices, because the demand is there.