While other markets have remained competitive during what appears to be an economic cool down in the Bay Area, the luxury market has seen listings jump and sales plateau. San Francisco Business Times staffer Mark Calvey reports on the state of the luxury market, which is often one the first to be hit during times of economic uncertainty.
Signs of this economic uncertainties include the drying up of IPOs, with only one starting up in 2016 compared to more than 80 in mid-2013 to 2015, and a drop in employment in San Francisco from December 2015 to April 2016. However this slowdown is not completely negative for the housing market:
"Slowing or plateauing does not imply a crash, and the cooling of a desperately overheated market to something closer to normal is not bad news," Paragon said. "Indeed, an improvement in housing affordability — and supply — would be good news, both socially and economically.