San Francisco Real Estate - Janice Lee

Two recent housing reports confirm what homebuyers and sellers already know: home prices have surged over the past year, especially in the Bay Area. But the bump in mortgage interest rates in recent months may be slowing those gains a bit and could lead to a more balanced market. S&P/Case-Shiller’s most recent home price index showed prices in the nation’s 20 largest cities rose 12.1 percent over last year. The San Francisco metropolitan area had the second biggest jump in prices, surging 24.5 percent year over year. Las Vegas at 24.9 percent led all cities. Others in the top five were Los Angeles (19.9 percent), Phoenix (19.8 percent) and San Diego (19.3 percent). According to the report, which was based on June figures, prices in Dallas and Denver hit all-time highs, while San Francisco housing prices turned in the biggest rebound, rising 47% from their low in March 2009. But analysts say the gains may be slowing as interest rates move higher. June marked the first time ...