The latest S&P/Case-Shiller is out. Through November, 2011, prices were down in 19 of 20 cities surveyed compared to the previous month. Prices are also down for most of the cities on a year over year basis.
In the San Francisco Bay area, prices are down 1.9% in November compared to October and 5.5% from a year ago.
Are you surprised? If you are you don’t listen to or read about the daily news. We have heard and continue to hear – and read – that the real estate market is in the doldrums. We hear that prices will continue to get worse or better or have bottomed out. It depends on what time of day it is and who you listen to.
If you are a buyer, I think two facts outweigh the chance that real estate values may decline slightly in the months to come before they start to recover.
Fact 1: Prices are affordable in most areas compared to where prices were a few years ago. Prices have tumbled. The house you thought that you could never afford may now be within your reach.
Fact 2: Interest rates continue to be unbelievably low. Interest rates look like they will continue to remain low for the foreseeable future but we all know that rates will eventually go up.
Do you think that you have a talent for timing the market that others do not possess? No one is going to sent you a test message to let you know that prices have bottomed out and it is time to buy!
The window of opportunity is open right now. It will probably stay open for a while, I agree. Don’t wait until it starts swinging closed.
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