It is hard to say. The recent statistics show that Santa Clara County's sales are down by 46% and home prices have declined by 9%. We have an overstock of inventory and it is harder for buyers to get qualified. There is more pending sales then we have seen this year. I do see more activity, but this is the prime time for real estate. If you look at it from a supply and demand view, we have plenty of supply but not nearly as much demand so it is possible that prices will fall. Regarding new homes they are offering great discounts and price reductions now, will they go lower? No one knows for sure.
I hope this helps.
Since housing has a very high transaction cost, it's not easy for buyers to get in and out in less than 6 month time scales. So, if fuel costs shoot up further this summer, maybe you'll see a drop in prices in those cities later this year. Or, if the economic recovery doesn't get derailed, maybe enough inventory is absorbed to drive up prices in a year or two. It's all very uncertain, but if you're looking at the time scale of a typical home owner, which is 7-8 years, then you generally come out ahead. Unless, of course, you find yourself buying in the midst of a historic market bubble. Finally, in the very long and mostly impractical time frame of 6 decades, you almost always come out ahead on a nominal dollar basis.
Quite a few areas in the Bay area are showing an upside.
The New Home Builders are offering great prices and values, and it will be Prudent to work
With a Realtor responding to your question to help negotiate another 5% to 10% from current
Actually, if I could forsee the future I'd be retired by now!!
No one can predict the future - and the idea that you are trying to makes me think you are not buying property for the right reasons. When you buy real estate you have about a 10% premium to get out of it, if the market stays flat. There are just 2 reasons that I buy real estate:
1) The property cash flows and me tenants will happily buy property for me.
2) I plan to live happily ever after in the house, I can afford the payments, etc.
In the stock market, 82% of the buyers miss their stock's "low" - but they are only paying $8 a trade, not 10% of the value!
Good Luck to you!!