San Francisco, one of the most expensive home markets across the nation, is facing the winter chill on high-end, luxury homes. The reeling stocks of technology firms and the worrisome global economy have made some well-heeled buyers start to hesitate. CNBC staffer Josh Lipton queries real estate professionals in the local market about the phenomenon. Lipton writes,
As technology stocks slide — the Nasdaq is down 15 percent this year — and private tech valuations suffer, real estate brokers say the feverish clamor for high-end homes in San Francisco has quieted.
"Somebody who might have pulled the trigger at $5 million last year now might be a bit more cautious," said Josh McAdam, a top producing real estate agent with Pacific Union in San Francisco. "It's not the same environment."
Christopher Palmer — an associate professor at the Haas School of Business at the University of California, Berkeley, who specializes in the housing markets — said the biggest threat to price appreciation is a downturn in tech because so much of the Bay Area economy is reliant on the sector.