Perhaps some facts and statistics would be helpful. I always tell buyers that they should plan on holding a home purchase for 3-5 years minimum to be sure they will appreciate. The last 7-8 years in the Bay Area saw such rapid appreciation that many people made alot of money by buying and "flipping" quickly. The current market is a more "normal" market and the news media has portrayed it as all gloom and doom. Mortgage rates are among the lowest in over 40 years; this means that as a buyer you will be able to afford far more today than you may be able to tomorrow should interest rates increase. According to the California Association of Realtors, the median price of a home in California has not declined since 1996 and the 37 year average rate of appreciation for homes in California is 7.75%. Some markets in the Bay Area have seen a 4% increase in median home prices; yes, the number of sales are down, but prices in some markets are up. (San Francisco's District 5 which includes Eureka and Noe Valley neighborhoods has seen a increase of 6% in single family homes and 11% in condos since this time last year). Many sellers are motivated right now. Come January, I canâ€™t necessarily say the same will hold true. The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while, the stars are in alignment for buyers: mortgage rates remain low (certainly by historical standards), and there is a large selection of homes to choose from. Now is a fantastic time to buy. Many people who are buying and selling right now are move-up buyers who are using equity positioning to obtain better, more expensive housing.
As a seller, you may enjoy the benefit of years of high appreciation rates and, on the other side of the transaction, as a buyer you enjoy near historically low interest rates and a large selection of homes to choose from. I am holding open a condo this weekend in San Francisco that has had a $76,000 price reduction. If you would like to discuss this market and facts about it further, please get in contact with me and I would be delighted to answer your questions and help you make a financially responsible, well thought out decision. I have 8 years full-time experience in San Francisco Real Estate and this is the BEST buyers market I have ever worked in.