San Francisco's housing market may be at risk for a bubble burst in the near future according to the San Francisco Business Times's Cory Weinberg.
The city has by far the most overvalued housing market in the U.S., according to data from a report released this week by UBS Group AG. By looking at indicators such as home price-to-income ratio and change in mortgage-to-GDP ratio, the report found that San Francisco is more overvalued than cities such as New York, Boston and Chicago on the global real estate bubble index.
Meanwhile, low interest rates, lack of housing supply and soaring wealth has indeed created a frenzy for home-buying and new construction. That leaves San Francisco at risk of a correction.