I agree with Vicki especially about when we will know we have hit the bottom, when we are on the way up.There are many properties with multiple offers, and some are sitting on the market. It really depends on so many factors- location, price and if it is "regular" sale or a short sale. If you are going to live in the property, does it really matter if we hit the bottom? Real Estate runs in cycles- up and down and up and down. If you live there and it goes down, you need to wait. Likely it will go back up but how much and when is anyone's guess. I remember having a Linda Mar rancher for sale and people telling me there was no way it would sell over $300,000 and I sold it for $310,000 and it sold years later over $600,000. No one has a crystal ball.

I think if you find a home you like, you can simply submit an offer factoring in an additional 10-20% decline.
It's hard to say where the bottom is; however, I do think things will slow down even more, between now and next spring.. Just a guess based on the time of year. It could be a good chance for a buyer to pick up something at a discount. Keep emotions out of your decisions and make an offer you feel comfortable with.
Remember, even if the market declines a little, we are at lows right now, and trying to time the bottom and lock in a low interest rate at the same time, could be a challange.

Please contact me if you'd like some help.

The best advice I can give you is to focus on finding the RIGHT home. The market is down and money is cheap, that's a great combination.

Try using my passive/agressive approach. Get all your ducks in a row, financing and down payment money, and then just wait until you find the home that makes you feel good. Then negotiate a good buy for yourself.

My buyer just closed a great home in Linda Mar, it was a remodeled 3 bedroom home and got a steal.

If you try to time the market, it will have appreciated before you jump in. It's more important to find the right home.

Regards,

Dave Tap Tapper

Cashin Company
650-403-6252
415-370-7195

Confused Home Buyer,

The only way anyone knows - even the experts - whether or not any market has hit bottom is when it starts to rise. Then we can look back and say: Oh! That's when we were at the bottom.

The best time to buy a home is when you're ready and it makes sense for you/your finances.

I love this quote by Mark Twain: Don't wait to buy real estate. Buy real estate and wait.

Ask your agent to prepare a statistical analysis to try to determine the direction of the market. "Try" is the operative word here. The point is to be as informed and as comfortable as possible about your decision.

Interesting question. There seemed to have been a decent amount of short sales in Pacifica compared to just a little further down the coast. Prices kept dropping, and with the combination of price drops and perhaps the banks more willing to negotiate there has been a pickup in pending homes especially those under $500k. I even saw one home get flipped in just a few months for a very nice profit in Pacifica. In any market there will always be good deals, and with some patience you can find them. Out of the 109 active/pending listings of single family homes in Pacifica about 25% are pending, so buyers are out there. As I mentioned these pending are homes on the lower price range. That's key for sellers to know if they want to sell a place, they have to be reallistic. Depending on where the financial markets go and interest rates, etc prices will also be influenced. If you are living in the Bay Area and need a place to live you have to weigh in on rent versus home ownership. If prices go down another $25k this year but you paid that in rent you didn't really save anything, but lost out on the chance to be living in your "own home." There are plenty of people out there that got priced out of being able to buy a home the first time around. They are still on the sidelines in addition to the large numbers of people forcast to move to the Bay Area over the next ten years. That will keep a floor on how low prices could actually go. In my opinion, if you find a good deal jump in now.

Glen Mitchell
glenmitchell@remax.net