Time to Jump in and Buy Real Estate Again!

Well, I think in many parts of America, prices have dropped so low, overshooting the longterm trend, that it could be safe to say it’s a good time to buy. But since you and I live in the rarefied air of the Bay Area, you know we’re nothing like the national averages. So I don’t think your headline is very helpful to folks in the Bay Area. It’s certainly cheap in some neighborhoods, but still obviously over-priced and ripe for a fall in others. People need a lot of research and data into their local neighborhood, not a blanket statement that ‘now is a good time to buy!’. Thanks for all your work.

Actually, that’s the title of the article and there are compelling arguements that make sense. You are right about the Bay Area, it’s definitely different! Whenever I read articles based in general perspectives like this one I always have to remind myself that markets are local. However, not only on a city basis but neighborhoods within cities. We’re also seeing different things in different price ranges. For example in the East Bay, we’re seeing homes in the lower priced ranges relatively stable with more competition probably due to the large number of first time buyers and investors looking to cash flow. However, in many of the higher priced areas, even neighborhoods that have historically withstood downward pressures, we’re now seeing a further reduction in values over the past 6 to 9 months. There are less “move-up” buyers due to a reduction in equity of their existing homes, plus the many challenges that buyers are now facing with lending. Thanks again for your comments!