Real Estate Resolutions for 2008!
1-Don't Forget that Real Estate is LOCAL
2-Put Prices in PERSPECTIVE
3-Buyers: Don't Wait TOO LONG
4-Sellers: Be SMART and PATIENT
Real Estate is Local
Contrary to the many negative real estate stories in the media, there are some communities that are still doing quite well with sales in the Bay Area. Of course, there are other locations where conditions are much slower. Currently, it is very difficult to generalize about real estate market conditions. The markets vary greatly by community and price range. Focus on the "real facts" about the LOCAL communities important to you.
Put prices in Perspective
The peak of the last "HOT" market in California was in 2003-2005. Without question, the numbers of sales have declined in many communities since then, but average closed sales prices remain HIGHER in 8 of the 15 local communities surveyed for this newsletter than they were at the peak of our HOT market in 2005! (See chart below "Closed Sales Reported to MLS.) So as a buyer, if you are waiting for huge price declines, that's not likely! Instead, you'll see prices gradually moving up and down.
Here's a look back at our recent peak years vs what is happening currently. While these are state-wide numbers below, they do reflect local conditions to a great extent also.
The numbers in 2003-05 were amazing with average prices escalating about 16-20% a year. Then in 2006 the increases started to slow down. Let's be realistic here. Those 20% appreciation numbers could not continue for forever! They would have resulted in a very unhealthy market where very few people could afford to buy in California. Market conditions have continued to slow since then in what appears to be a return to a more normal, healthy market. Of course, a national recession could impact sales and prices negatively but most experts think the economy will rebound instead.
http://www.jsullivanrealtor.com/market_update.php
Comments(2)