Last week, we heard that a new report from Fitch Ratings officially pegged San Francisco real estate as overvalued and in a bubble. CNBC followed up the report by talking to leading real estate agents in the city, all of whom confirmed that things feel different at the top of the market than they did a few months ago. Nina Hatvany, who works primarily with high-end properties, told CNBC that her clients are talking about "the slow IPO market and overvalued unicorns."
The second and fourth quarters of the year are traditionally the hottest for real estate in San Francisco. In spring of last year, 18 homes sold for $6 million or more, while by quarter four only nine hit that price. Christopher Palmer from the Haas School of Business at UC Berkeley noted that prices may fall, but we're nowhere near a big round of mortgage defaults and foreclosures. And demand around the $1 million mark remains strong for now.