Hi, Price reductions are happening in communities all over the bay area. In a recession as deep as ours is everywhere takes a hit. Kensington is still a desireable location. One thing that is happening is that those buyers who would normally be moving up are staying put until the overall economy is more stable. Prices come down when there aren't as many buyers. If you would like to see a one year history of prices in Kensington I have them posted on my website. Go to http://www.billfletcherhomes.com and look on the left hand side for a tab that says "market update". Click that and it will take you to a page that has updated stats for many East Bay Communitites. Pick the one you want to look at and you'll have about 20 pages of graphs covering such things as list price vs sold price, days on market, median sold price, months supply of inventory, and more.It will go back either one or two years by month so you can get a very good picture of a specific area. I hope this is helpful.
Unfortunately, both coasts are still experiencing a decline in home prices. Fortunately, there is a glimpse that stability is nearing.
Homeonership is for the long haul, that's where you will find appreciation. The swings will occur, you just have to ride the highs and lows.
Hang in there!