customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Reuters

Home prices in the San Francisco Bay area, a hotbed for technology startups, climbed 16 per cent above sustainable levels in the third quarter of 2015, Fitch Ratings reported on Monday.
Property prices were now at a new all-time high for the Bay area, and 62 per cent above the post-recession low in early 2012, the rating agency said.
“The last time the Bay area experienced this kind of home price growth was during the dot-com era from 1997-2000,” said Fitch analyst Grant Bailey.
Sustainable price levels, according to the Fitch index, are calculated as a ratio of current home prices against local wages growth and the state of the economy.
The area’s high exposure within post-crash RMBS and its prior vulnerability to boom and bust cycles, made the surge in house prices a particular concern.
San Francisco area mortgages accounted for about 12 per cent of all jumbo home loans that were securitised into private-label mortgage bond deals since 2009 – the largest of any other metro statistical area, Fitch said.
The agency however added that risk to bondholders was still fairly limited.
“The credit quality remains very high and loss protection for bond investors is sized assuming a home price correction occurs,” the report said.
Oil and gas producing regions of Texas and North Dakota were also flagged by Fitch as being overvalued by 12 per cent and 13 per cent, respectively.
Median sales price rose to US$809,400 in the third quarter 2015, a 10.7 per cent increase from the third quarter of 2014, according to the National Association of Realtors.


Brexit uncertainty an opportunity for overseas investors 

Technology slowdown starts to bite in San Francisco’s commercial property market

UK home prices rise 1.3 per cent in March as regions outpace London

London property market still attractive for investors despite stamp duty surcharge

Jones Lang LaSalle's International Property

San Francisco Bay area homes 16 per cent above sustainable levels, says Fitch

A home belonging to a woman who asked to be identified as Qat Johnson is pictured in Santa Clara, California January 27, 2016. Some San Francisco Bay Area residents hoping to rent their homes for thousands of dollars a night to deep-pocketed Super Bowl attendees are finding themselves short of the goal line. Picture taken January 27, 2016. REUTERS/Noah Berger

Backyard view of a home in Santa Clara, California, the heart of Silicon Valley. Property prices were now at a new all-time high for the Bay area, and 62 per cent above the post-recession low in early 2012, rating agency Fitch said. Photo: Reuters

Property

International