Bubble. It’s such a light-hearted, innocuous term. Maybe it makes you think of summer days and bubble gum, or perhaps your mind wanders to toddlers, cats, and dogs chasing after the sticky, spherical shapes in a frenzy of excitement. Whatever the case, bubble certainly isn’t a scary word. That is, unless you are using it in relation to the housing market.
The most recent area being associated with a dreaded housing bubble is San Francisco, a city that is commonly found on lists of the hottest or strongest housing markets in the country. But it might be starting to overheat a little bit, reports HousingWire.
Home prices in San Francisco may be just about to reach a level that is unsupportable by area income. The gap between a sustainable home price in San Francisco and real home prices is beginning to widen at an alarming rate.
Another red flag came in December when the San Francisco Federal Credit Union announced that it was willing to go to extreme measures to help potential homebuyers purchase a home.