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San Francisco Luxury Housing Market Cools Off

Posted by Jereco O. Paloma on Feb 15, 2016 12:55 PM EST
Home Prices Rise Sharply In May more big
SAN FRANCISCO, CA - JULY 30: Real estate agent Maurice Dolan (R) hands out information on a home for sale during an open house on July 30, 2013 in San Francisco, California. According to the S&P/Case Shiller composite index survey of 20 metropolitan areas, home prices increased 2.4 percent in May, their highest level since 2006. San Francisco home prices skyrocketed 24.5 percent. (Photo : Justin Sullivan/Getty Images)

Real estate agents based in one of the world's most overvalued housing markets had expressed concern about the apparent cooling off of San Francisco's posh housing market.

In a special report published by CNBC News, it appeared that real estate agents who specialize in the high-end segment of the markets are starting to notice the apprehensions of their clients. The report noted that the situation had reached an alarming level where more clients have expressed concerns about the stability of the economy rather than the houses that they are buying.

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Nina Hatvany, a veteran real estate agent who specializes in luxury properties in San Francisco, was not the first one to notice such a trend. For her part, she said more of her clients these days are arguing with her about things that are not related to the purchase of the house.

"I have a number of buyers who are just more hesitant. They look and they talk and then they start arguing with me about the slow IPO market and overvalued unicorns. I feel like I have to argue with them about how nice the house is," Hatvany was quoted as saying by CNBC News.

The recent NASDAQ index was down by 15 percent on a year-to-year basis. This, the report noted, was on top of the dwindling tech industry, which San Francisco real estate market is heavily dependent on. With all of this, the report showed that the demand for posh houses in San Francisco significantly declined.

According to a recently released report from SF Gate, which cited data from Fitch Ratings, the real estate market in San Francisco is overvalued by as much as 16 percent. The report, however, noted that while real estate prices continue to increase across the country, San Francisco's level was significantly overboard.

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