Friday, December 10, 2010

Is the Real Estate Bubble Baaack, Already?

The San Francisco Business Times reports:
Could the real estate bubble be back so soon?

A mere 18 months after a devastating recession led to widespread foreclosures and plummeting values, San Francisco’s office investment market has heated up to the point where some industry players are questioning whether a new bubble is inflating.

Investors say demand for office and multi-family apartment complexes, along with plentiful and cheap capital, is pushing prices up sharply.

Keep in mind this report is coming from the People's Republic of San Francisco, where I would imagine they don't even allow new construction by kids playing with Lego blocks. So because of the limits on suppply because of the lack of new construction, and the proximity to Silicon Valley, it does make sense that SF would be the first real estate market to heat up. I doubt it will be the last.

1 comment:

  1. Good point about supply, but there's another bubble in tech forming. Check out that $6.5B offer to Groupon.com.

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