The newspapers finally confirmed what we all already knew. Real Estate sales are way down, even in Marin and San Francisco. In the Bay Area, September '07 sales were down nearly 45% from September '06. San Francisco and Marin fared slightly better with drops of 30% and 24% respectively.
Why was September such a nightmare of a month? Because August was when the mortgage crisis hit its peak and most real estate transactions take 30 days or more to close. Thus, every buyer who couldn't get a loan in August became a house that didn't sell in September.
Take a look at these articles in the SF Chronicle and Marin IJ for more details on the slowdown.
The upshot? The next several months are shaping up as a spectacular time to buy real estate. For the first time in years, there are real bargains available. At Next Generation Real Estate, we are looking at Sonoma County (especially south of Santa Rosa) as a particularly intriguing market. Sales and prices are well off their over-valued highs from 2005-2006. But our hunch is that this market will recover more quickly than some other hard hit counties. We're always happy to discuss our thoughts on where opportunities lie. Call us any time.
Friday, October 19, 2007
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