I'm shaking my magic 8 ball right now... answer Reply hazy, try again.
Seriously. We all wish that we could predict the market. All we can do is educate people on what the past has shown and what the current market is doing, and how certain events affect the future.
Back in the boom of the market when housing prices where increasing daily, Cisco Systems was going to move to Morgan Hill. This news spurred builders and home buyers to go south. Prices where jumping up. When Cisco didn't go in everyone who banked on Cisco were faced with challenges. New stores, restaurants, builders, and home buyers.
When the gas prices went up to nearly $5.00 a gallon this made an impact on where people were willing to commute from.
When the bubble popped Morgan Hill, So. San Jose, Tracy, etc. were hit pretty hard.
Now as our market has once again heated up, buyers are not finding what they want in a price they can afford, so they are making concessions, this being commute time and cost. Therefor, they are looking towards Morgan Hill because they can get more house for their money. It's a wonderful community which still has a good amount of open space.
In today's market Morgan HIll has experienced multiple offers and prices are getting better. If our interest rates were to increase by 1% that affects a buyer buying power by about 10%. That will either mean they have to make more, pay less or put more money down. So do we think interest rates will go up? I think so. I don't' know when. And will people still be buying and selling houses. Absolutely!
As for where the prices will be, no one can answer this with certainty.