Low prices, mired sales lead to good opportunities
Price appreciation in the Bay Area and California has ground to a virtual halt after a five-year real estate boom during which housing prices generally posted double-digit annual gains. With appreciate at 1.7%, which doesn't beat inflation, the housing market is poised to bottom out in 2007. Sellers are pricing homes more aggressively and yet buyers are still holding off waiting for the bottom of the market. With appreciation at a standstill, buyers who are looking for the bottom better start opening their eyes. There are deals to be had in this market. If you are planning on purchasing with the intent to hold for the long term, at least 5-7 years, then now is the time to get in the game. Take advantage of the low interest rates and motivated sellers, buy into equity and be happy with your home purchase.