Monday Morning Real Estate Update — Monday, December 21, 2020

A Voice in San Francisco

Podcast Transcript of Never Too Late To The Game’s Monday Morning Real Estate Update, December 21, 2020.

WHAT CAN YOU AFFORD IN SAN FRANCISCO?

The Median home price in San Francisco is now a bit over $1.5 million, which means you need to earn a minimum of $310,000 if you want to buy a home. Of course, you can purchase a decent condo for $800,000 to $1,000,000.

Prices will likely to continue strong for Single Family Homes in San Francisco but where condos are concerned, is a bit of a toss-up. I think we’ll just have to wait and see what the Spring of 2021 brings to the real estate market.

How much house can you afford? It’s generally really easy to figure out how much house you can afford to buy. The simple formula is that 28% of your salary should be equal to the mortgage payment you can afford. So, using our example above, with a salary of $310,000, you can afford a monthly payment of $7,233 per month.

MORE COVID-19 FALL-OUT

According to the Mortgage Bankers Association, mortgage delinquencies are on the rise in a number of sectors. The hospitality sector has been hardest hit and now predictably, retail and office space are following.

Bloomberg is reporting that NYC lost $1.2 billion in Real Estate revenues due to Covid19.

Yahoo is reporting that a Real Estate Investor Winter is ahead. This may be true, but especially for commercial real estate, as residential remains strong for the time being.

The Motley Fool is advising that investors have “life science” buildings in their portfolios (duh). Yes, this may seem a little too obvious but if the predictions are correct, then Covid-19 is just the first of many opportunistic pandemics to come.

SAN FRANCISCO BY THE NUMBERS