This real estate market continues to baffle and perplex, yet some things definitely have moved from the "guess" category to the "fact" category. Basically, the market is still impaired, to put it mildly, and the degree of impairment depends on your location, your pricepoint, and your type of real estate. But in general, here are a few things that proven to be true.
Prices are down, sales are up. The Santa Rosa Press Democrat reports that March Sonoma county home sales increased 40% since March of last year (29% Bay Area-wide), significant by any view. Prices, of course, have dropped so deeply over the last couple years that they are now off 27% (at $320,000) from March of 2008. Not that it matters, but at their highest (2005) they were $619,000.
Of course, there are winners and losers. I have a client who closed escrow a couple weeks ago on a property that sold for $260,000. In 2004 the same property sold for $445,000. A definite winner. Ask me about the "losers" though - I'll tell you some really sad stories.
The real estate landscape has lots of different looking facets now. There's the whole thing about foreclosures, and how they play into the scene, affecting neighborhood values, how they affect the property tax base, and so on. Short sales are also something that have really come in to their own, and for buyers who can be REALLY patient, they offer some great opportunities as well. We'll talk more about these things soon...
Next: Reasonable Expectations
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