Is the West Coast Housing Market a leading national housing indicator?
Zeroing in on San Fransicso Real Estate Prices: Can we predict Greenville SC Housing Prices? Most, would argue no because real estate is local in nature. However, there are national and even sometimes international common denominators. What would be a common denominator in national or international housing trends? Easy credit, low interest rates, growing GDP, growing employment, etc--and some of these denominators bleed into the local aspect of the housing markets, like Greenville's employment base and destination city status.
I tend to look westward for macro or national real estate trends, particularly to California. Why? The state of California is the 5th largest economy in the world by GDP! So California could be a leading indicator from an economic perspective. Additionally, the tech sector with companies like Google, Apple, Facebook, and many others are headquartered there bringing some strong GDP, employment, and earnings to the state.
Today, I'm looking at the tech hub of San Francisco, specifically median home prices. They are skyrocketing! According to Paragon Real Estate Group, "Comparing the first half of 2018 to 2017, the median house sales price in San Francisco increased by an astounding $205,000 (per sales reported by 7/3/18). For condos, the increase was also very substantial, at about $71,000." (Source https://www.paragon-re.com/trend/san-francisco-home-prices-market-trends-news).
So, at this point, the market is on blistering fire in San Fran while here in Greenville and Spartanburg we are seeing rising values and continued strength in the real estate markets.