Wow… commenter Steve really stirred up some discussion. Here’s what Steve had to say yesterday:
Real Estate is Saved! Thanks stimulus package! [Burbed.com]
well, I’m ecstatic. I bought in October 2005 on the Peninsula (the good part), my house has appreciated $200K while everyone said it would never happen, and now I can refinance out of my jumbo loan to save $$$ every month.
Can’t wait for my 15% appreciation in the Spring! I love Bush!
The pessimism for the market carte blanche is misplaced.. just need to pick carefully. Los Altos, Palo Alto, Mountain View resale homes above $1M all have appreciated just fine during a flight to quality schools, quality employers, and most importantly areas with no new housing development. There’s zero inventory, LP remains above 100%, high-tech is weathering the storm just fine, etc, etc. My advice – jump in to these areas now… the water’s fine!
Pralay – (I’m not a RE agent) I agree with you on sales, but by pulling listings in this area, demand = supply for these areas where there are no investors, good schools, solid job prospects, and most folks lovin’ their low prop 13 tax base. My sources:
Inventory, 12-month avg source: rereport.com/scc/ (click on relevant cities), Zillow, Trulia
MV=25 homes in inventory, 12-month avg. up ~ $200K (Zillow MV non-condo=$100K gain)
LA=20 homes, 12-month avg. up ~ $150K (Zillow LA = $200K gain)
PA=20 homes, 12-month avg. up ~ $300K (Zillow PA = $200K gain)
Current snapshot of mlslistings: 46 homes for sale in MV, 27 in LA, and 31 in PA… very low, and it’s been that way for 6 months…
Trulia has MV & LA up for non-condo (3&4 bed) units. Kinda tough to tell on Palo Alto 3&4 bed.
And, my favorite, Creekside Realty: top 10% of homes in SCC increased median from $1.37M to $1.70M in one year. Check it out: http://www.creeksiderealty.com/bay_area_real_estate/2008/santa_clara_county/1jan.htm Yeah, I know there are more high $$ selling than low, but look at the historical trend back to 2000…
I’m just proving the premise of this site – There is The Real Bay Area (>$1M houses in NW SCC county) and there’s everything else… Make the splurge, you won’t regret it now, you won’t regret it later.
Well… what do you think? Do you share Steve’s sentiments? Is now the right time to buy in The Real Bay Area?