San Francisco Bay Area Real Estate Market Cycles
Before jumping into the specifics of the Palo Alto real estate market we’d like to introduce you to an overview of the market for the past 30 years. As strong as the demand for Palo Alto real estate normally is; it’s important to note that the real estate market does not always appreciate. Global affairs, the savings and loan collapse of the 1980s and the tech meltdown of 2008 have all negatively affected Palo Alto real estate prices in the past.
If you look at the graph below you will see that real estate prices roughly follow a 10 year cycle where prices increase in the 7-9 % range/year for 8-10 years and are then usually followed by a decrease in home prices for 1-3 years and then the market rebounds and starts over.