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August 8, 2007
Dear Property Owners,
This week I call your attention to an economic perspective on U.S. residential real estate markets according to Matt Woolsey and Forbes.com. In his article “Riskiest U.S. Housing Markets,” Woolsey assesses various factors including lending conditions, percentage of Adjustable Rate Mortgages (ARMs), loan-to-value ratios greater than 90%, vacancy rates and susceptibility to downward price pressures to come up with these ten riskiest markets:
- Miami, FL
- Orlando, FL
- Sacramento, CA
- San Francisco, CA
- San Diego, CA
- Phoenix, AZ
- Kansas City, MO
- Cincinnati, OH
- Chicago, IL
- Denver, CO
While we know that San Francisco is not the East Bay, the assessment of the San Francisco market by this article is worth reading. San Francisco is on the list for a high percentage of Adjustable Rate Mortgages, currently over 70% of loans in the last year were ARMs. This makes the area highly sensitive to interest rate increases.
Additionally, San Francisco is generally viewed as having an overvalued market and correspondingly is more susceptible to downward price pressures. When viewed alongside an analysis of San Francisco’s price-to-earnings ratio, the possibilities of a housing market correction seem more probable.
To read details about why San Francisco and each of the other markets earned a spot in this top ten risky markets ranking, see the full article: “Riskiest U.S. Housing Markets” Forbes.com July 17, 2007.
Download the August 6, 2007 SVN property listings.
Download the July 30, 2007 SVN property listings.
In Contra Costa county there are at least 25 properties of 16 units or more available for sale. In Alameda County there are 65 properties of 16 units or more available for sale. Do you know of anyone interested in acquiring a multifamily investment property?
Continued Success!!
Pete Chrzaszcz (Shunz)
Advisor, Broker
Sperry Van Ness - CRG Investments
925-719-3569 cell
If you don't already know about the Sperry Van Ness difference, ask me. You'll be glad we met!
Sperry Van Ness
Sperry Van Ness - CRG Investments
415-464-2404 direct
415-464-8993 office fax
1100 Larkspur Landing Circle, Suite 170
Larkspur, CA 94939
