C21Mike's Real Estate Blog (San Francisco Bay Area)

I've been selling REO properties throughout the east bay for awhile now, and it seems quite evident that people are beginning to recognize that we are nearing the 'rounded-bottom' of the depressed real estate market. Why? It's quite simple. Prices have dipped anywhere from 10-40% in just the past year (depending on area/neighborhood). Real estate prices are not going to zero. We've got a robust local economy. The job market in the bay area is strong. Gas is still under $5/gallon.

Two big factors that are already showing why we are in the 'low-plateau' of home prices: decrease in interest rates, raising of conforming loan limits. The fed's lowering of interest rates doesn't necessarily have a 1-to-1 relationship on first mortgages, but it does have an effect, and will continue to exert downward pressure on home loan rates.

That being said, savvy consumers are realizing these facts and are snapping up these value properties (REO). It's impossible to time the absolute market bottom. Consider yourself fortunate when you simply buy near the bottom. When every everyone seems to want to buy, that's the time sell. Conversely, when everyone seems to want to sell, that's the time to buy.

So what are you waiting for? Only you control your destiny.