I recently sold my home in Mission Fremont area. I initiated the sales since my wife fell in love with Santorini plan #3 in Windemere.
While preparing to sell the house, I found out the real situation with real estate market (all over the US and the world). How the cheap money create this mess? Thus, I convinced my wife and we are now renting in Fremont(close to the old house). We are going to wait.
This was before wall street implosion. Now, there are more uncertainties. When you see a largest insurance company go bankrupt in matter of one week, you do not want to make a major money decision. You want to play safe. I am betting that the house will go back to 2000(before dot com bust).
My recommendation is you rent Windemere house and purchase a bank owned home when economy is stable. The rent in Windemere is between 2-4K. That seems a lot but compare to price reduction of 10%+ in next two years, it is cheap. This is not my predicton, it is from Schiller Case prediction.
Too many unknowns:
1. How many banks are going under. Washington Mutual tops that list.
2. How the largest insurance corporation, AIG, work under the government shadow? Must unload many
companies at fire sale(no different than banks trying to unload REOs).
3. How many weak insurance companies go under due to having AGI bond or stock in their portfolio?
4. Too weird investment environment. No fund is safe. Russia, emerging market, India, China, Oil, Commodity, the U.S all down. I recently moved my money from emerging to bond fund on my 401K. Still lost 5% in matter of month. Amazing.
5. New players in government in four(4) months. Unproven team.
6. The new lending criteria has removed more than 50% of buyers. That means that demand is reduced a significantly.
I will most likely buy a house in 2010 and I am hoping most of distressed sales are completed and the house price will be back to normal pattern(hopefully up).
I hope you make a decision wisely. Many realtors are trying to state this is the best time. See their responses in 2006 and 2007. That is their job and I do not blame them. Do the research on your own and make your decision. Good luck to you.
Now, I am renting and