A UBS Group AG survey of 76 wealthy families found that 30 percent of respondents said they built their fortunes through real estate, twice the percentage of

What will happen to San Francisco real estate in the next five years?

As Frank says, these types of predictions are typically fools’ errands. Given that and the fact that I’m about to take a stab at an answer, you should clearly be able to tell that I am a fool and thus take this with a grain of salt.

Prices are likely going to continue to go up. Even though real estate in SF is already crazy expensive, the real estate market is still at a relatively low point, like everywhere else. The thing about SF, though, that’s not necessarily true of other places is that there’s just no creating additional supply. The city is only so big, so unless there’s something that happens to make it a less attractive place to live, thus driving people away, there’s really not much that can happen to drive prices down.

Looking at the market now, there is an incredibly limited supply of real estate available for purchase – this is a pretty clear sign that owners of real estate expect that the value of their properties is towards the bottom of what it will be in the near future, meaning it would be a poor choice to sell, as this is where things start going up. Similarly, if you’ve tried renting a place, you know how tough it is to get a place and how expensive it can be – this is limited supply and lots of demand (with even increased demand for rentals because people who want to live in the city and would like to buy can’t do so because there isn’t property available to buy).

Basically, all signs to things going up, barring natural disasters, etc.