I live and work at my real estate business here in the Silicon Valley. San Francisco is not an area I typically do business but I couldn't help but comment on this article from the San Jose Mercury News because, in my opinion, it typifies where the top end of the market is going here in bay area.
The article is regarding a $49M, 14,000 sq. ft penthouse condo in a new luxury tower, call The Lumina Tower. It's located in the trendy SoMa (South of Market) area in San Francisco, located close to the Embarcadero and the AT&T park. It has views of the much of the bay and the bay bridge. So the views, the area and combined with the more or less bombing economy here in the bay, that is how the builders, Tisha Speyer, are justifying the stratospheric price.
New York is notorious with their high priced housing and now it seems San Francisco is headed in that direction, and this is putting more and more pressure on the low income and middle class in the region. On one hand, Yes, prices can't keep going up forever, BUT places like SF and the Silicon Valley where I'm at are very space constrained. The earth isn't creating more land to build on after all. This will always keep prices relatively high, And added to this the fact we have a booming tech economy creating high paying jobs, and investors from India and China with too much money burning a hole in their pockets. Anyhow, Yes, prices will come down eventually, but I'm afraid it won't stay that way for long.
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