Bearish calls for the Bay Area housing market have been ticking up over the past three months with one of the latest coming from Clear Capital, a national provider of real estate valuations, data and analytics for brokers, lenders and appraisers:
“Both San Francisco and San Jose have been red hot markets, supported in large part by strong job growth. The latest numbers reveal, however, that both markets have reached their apex in the most recent upward price swing and are projected to take a slight dip into negative territory through the second half of 2015, by -0.2% and -0.4%.
While both markets are projected to have total 2015 yearly growth rates of around 3%, entering winter 2015-2016 on the down side is of great concern. What started as ‘red hot’ at the start of 2014 may end as ‘in the red’ come 2016.”
Speaking of revealing, keep in mind that six months ago Clear Capital was projecting that home prices within the San Jose MSA would gain 1.7 percent in 2015 and would drop 0.8 percent in San Francisco, versus their latest forecast which now calls for 3.2 percent and 3.4 percent price growth respectively.