Anecdotally, I know of three properties on part of my street alone (~0.6 mile stretch) that have been vacant and not for sale for more than a year. Another property that went on sale a few months ago was recently pulledâ€”it remains vacant.
As well, I agree with your projection about the direction of real housing prices. However, due to inflation, nominal prices could decline less or remain flat for several years.
By the way, did you notice the phase shift in â€œNumber of Salesâ€ after the middle of 2009? What does this imply about liquidity in the Albany market?
For more information I have included a link to an article on this very topic from my blog on the Albany Patch.
Albany is still a much sought-after city, especially because of the favored schools with high academic standing, and similar to other cities are Alameda, Berkeley, Piedmont, and parts of Oakland.
Although prices are nowhere near where they were at the peak, they seem to be stabilizing. With such low inventories of homes for sale, we are seeing multiple offers for properties that are priced aggressively (i.e., "ahead of the market"), show well, in good condition, and in good locations.