Wednesday, July 15, 2020
The Cheapest House in San Francisco is a Shack?
Everyone knows that the San Francisco real estate market is a bit crazy, but this time a really absurd thing happened! The average rental for an apartment in the city is around $ 3,500 a month and the average housing price has just peaked at $ 1.2 million. Maybe that's why someone is trying to sell this "shack" at a price close to reality, $ 350,000! The "house" if this can be defined, does not even enjoy a privileged position, but is located on the border with Daly City. Obviously, it is the terrain that boasts that value.
The house, (at least from what you can understand at first glance), has concrete foundations, half of the structure has partially collapsed and the interiors could not have been worse, the bathtub has even sunk into the floor...
The San Francisco property market will continue to see good development despite, as we all know, the pandemic has slowed the economy of the whole country. Although building permits in the area have recently stalled, some recent data tells us that this market is actually healthier in this city than in many others. San Francisco has always had the problem of housing scarcity, which is why the competent authorities expect a huge investment in the coming years which could lead to the construction of 3.5 million more homes. All this will also happen thanks to the contribution of Google who recently decided to invest in the real estate field.
House prices in San Francisco have stabilized after a rise in recent years will continue on this trend. Average house prices in San Francisco went up to May 2018, then dropped in summer 2019 and stabilized. But thanks to lower interest rates, the San Francisco real estate market has become more of a buying market, making it perfect for new property investors who have a certain type of budget available.
The city of San Francisco beats all the big cities of the United States when it comes to economics and Silicon Valley certainly plays a fundamental role in all this. The propensity for innovation and entrepreneurship, an unparalleled ecosystem and very marked wage growth make this city American economic pride. There are many expanding technology and biotechnology industries in the city and the growth of high tech gross domestic product has helped San Francisco become one of the most sought after and desired cities in the world.
That said, we advise future buyers of this "house" to bargain on the price and, having obtained a big discount, to demolish the structure and build something new!