What’s Happening in San Francisco Real Estate

As of March 16, significant interbank transfers of funds were taking place to bolster the balance sheets of banks, and several analysts were warning of a broader banking crisis in the United States. Many banks had invested their reserves in U.S. Treasury securities that were paying low interest rates. When the Federal Reserve began raising interest rates in 2022, bond prices fell, resulting in a reduction in the market value of bank capital reserves. As a result, some banks, such as First Republic, sold the bonds at significant losses as the yields on new bonds were considerably higher.

 

To assist the faltering First Republic regional bank in San Francisco, eleven of the largest U.S. banks provided up to $30 billion in support, and the Federal Reserve’s liquidity facility had borrowed approximately $150 billion from various banks by March 16. Despite recent bank failures and rising interest rates, the high-end segment ($3M and above) of the San Francisco real estate market remained unaffected, with strong demand continuing.

 

A recent CBS report highlights a significant shift in the homeownership landscape – women are surpassing men in property ownership. This is attributed to the longevity of women and their understanding that owning a home can help narrow the income disparity between genders.

 

Preliminary data indicates a marked reduction in the resident population of San Francisco, with a loss of 38,000 people recorded between July 2019 and December 2022.

 

My three-legged dog Jesse, always turns heads wherever we go, with his charming wobble and wagging tail. He’s proof that sometimes, less is more! He’s a happy little guy, even when he’s dreaming.