While much of California is struggling when it comes to real estate, the city of San Francisco grew in real estate value by around $2 billion in the past fiscal year, bringing its total assessment value to $163 billion. Phil Ting, the city’s assessor-recorder, called the city “very fortunate,” adding that “we still have the strongest real estate market in the state” and predicting a “continued resurgence” in coming years. San Francisco’s commercial office space market is one of the few in the country that is actually outstripping the supply in the area for real estate in that sector. Analysts credit this trend with property value increases in the area of up to 40 percent.
Although the residential sector in San Francisco is not recovering as quickly as the commercial sector, former president of the San Francisco Association of Realtors (SFAR) John Lee has predicted that this area of the market will also eventually recover in San Francisco, though he believes that “the next few years for the market will probably be about the same as the past one” thanks to economic uncertainty and unpredictable employment levels. Do you think that San Francisco will make a recovery? What can the rest of the country learn from California?
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