Year over year prices were relatively flat for 2006, which is a major departure from the rapid price increases for the first half of this decade. Prices are expected to remain relatively flat for 2007 due to lower demand and slightly higher interest rates.
*2009 Figures current through July 29th
Condo prices were also flat on a year over year basis and may be a little more vulnerable to decreases than SFR prices in 2007 due to the steady increase of supply in the SoMa and Mission Bay districts.
*2009 Figures current through July 29th
As a result of high prices for Condos and Single Family Homes, more and more people are forming buying groups to purchase multi-unit buildings, where the average cost per unit is lower than individual properties. This trend has changed the valuations for certain of these properties from a traditional Income/Investor approach using GRM (Gross Rent Multiplier) or Capitalization of cash flow, to a more conventional (and higher) owner-occupied residential valuation.
