The real estate market in the Bay Area has been booming for years, but now things are changing. Home prices are dropping, sales are plummeting, and it's getting harder to find a place to live.
In just a few months, median San Francisco home prices have dropped by $300,000—and that's on top of an already massive decline over the past year. In August 2022 alone, sales of existing single-family houses in the Bay Area fell by nearly 30 percent compared to the same month last year. Three of the nine counties in the Bay Area saw their sales drop more than 30 percent in August 2022 compared to the same month last year; Sonoma County experienced the biggest decrease at 40.3%.
Supply is also increasing: there are currently 2.5 months worth of homes for sale in San Francisco County—a significant increase from last year when it was 1.5 months worth of supply. Homes are selling for more than asking price because affluent home buyers are ready to spend more money than they're asking for if it means winning bids over other buyers who want those same homes.
New world order
The Bay Area is home to some of the most exciting real estate in the country. But we're also at a pivotal point in history.
Did you know that every 250 years, ruling empires have changed? A new world order has emerged, and every time it happens, there are 10-20 years required for the transition from one empire to another. This pattern has continued since ancient times—from Chinese to Dutch, British, and American empires—and it's happening again right now.
But what does this mean for you? How can you use this information to make smart decisions about your own real estate future? Why should you care that empires rise and fall? Well, let me tell you!
The big cycle behind all of this is peace, prosperity, productivity, productive debt growth, financial bubbles (or bubbles), big wealth gaps between rich and poor people… followed by competitors who quickly copy these systems and improve them while also using them overstretch themselves which results in economic downturns which then leads to printing money and credit followed by revolutions and wars which then leads—finally—to debt restructuring by governments as well as political restructuring. We are again at the cusp of a new world order's transition stage of 10-20 years when the debt gets restructured for stability. And this can happen through austerity measures, debt defaults, raising taxes, devaluation of currency. Expect more taxes and printing more money. It's going to change the money that we use. It will restructure the economy. New money, new values, new treaties, new ways of doing things, internal and external. Over the long term, it will help re-inflate the value of houses.
Brace yourself. Be prepared.