8

Best as in: 1. Liquid 2. Minimum borrowing costs

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    Considering that prices around SFO are on the rise and look to grow so in the near future, do you think it is correct to short it rather than going long ? – DumbCoder Sep 7 '15 at 14:07
  • @DumbCoder Some believe SV to be in a major bubble. – ceejayoz Sep 8 '15 at 1:43
  • Who are some ? I am little wary about when some decide to predict something which has all evidence going against it. – DumbCoder Sep 8 '15 at 10:17
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    Whether it's a good idea or not is irrelevant to the discussion of how one would do it if one so desired. – Yes I use MUMPS Sep 29 '15 at 22:04
  • Best bet would be to find REITs to short that are concentrated in the SF area. Although most will probably be commercial -- residential you could probably INVEST into rental REITs as people that get foreclosed might be in the market to rent apartments. – Ross Oct 2 '15 at 15:58
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The most obvious route is to short the lenders, preferably subprime. Since there are no lenders that operate exclusively in San Francisco, you could look north at Canada. The Canadian real estate market (esp. Vancouver) is just as overheated as the San Francisco market. As a start, famous short seller Marc Cohodes recommends HCG (Home Capital Group) as an opportune short.

3

You could short home builders who do a lot of their business in Northern California. (Not just San Francisco, Silicon Valley, or even the Bay Area.) Home prices in Sacramento and the northern San Joaquin Valley are correlated with Bay Area home prices.

Many of these builders went broke during the last bust, so you might have trouble finding a publicly traded home builder that is concentrated in just one market.

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