In recent days we have seen a dramatic increase in San Francisco’s inventory and minor increase in interest rates. Does this mean the market is softening for buyers? At this point, all signs point to “no” at least in the short-run. Although supply has increased, the demand continues to outpace small increases in inventory and likely buyers don’t seem phased by minor adjustments in interest rates.

On Friday, NPR’s Marketplace reported findings from a London-based study on housing and rental trends in major UK and US cities. The report suggested that renting may be a better financial investment than buying, at least for the next few years. As we have heard in recent months, many economists believe that current housing prices are not sustainable, and the bubble will burst, or at least deflate. However, most buyers I’ve spoken with at open houses fear that San Francisco’s market will run as high as New York’s and London’s and will ultimately become unaffordable for anyone but millionaires. They feel that if they don’t get in now, they will never be able to afford to own in the city. The truth is, no one knows what will happen to the market…. all we can do is watch and pay attention!

Notably, the leading economist said that she recently had her house valued because she sees this as a great time to sell! In San Francisco, this is doubly true. We haven’t seen outbidding and dramatic over-asking prices like this ever, not even during the dot-com boom years. If you’ve ever thought of escaping urban life for Portland or more affordable points east, now might the right time, at least from a financial standpoint.