San Francisco Bay Area Real Estate - Buy Now Or Wait It Out?

[whhmjr...@yahoo.com]

Probably the most popular real estate debate today centers around the
San Francisco Bay Area home sales market and whether or not now is a
good time to buy a home. With recent changes in the market, most
buyers are sitting on the sidelines trying to weigh the pros and cons
of jumping in to seemingly unpredictable and turbulent waters. While
both home prices and home sales are falling nationwide, the market in
the San Francisco Bay Area is a bit of an anomaly. According to
DataQuick Information Systems, a real estate research firm, though
fewer properties are selling in the Bay Area, and real estate
inventories are growing, overall home prices are still going through
the roof. It has been reported by news media that the median price for
an existing single family home rose to a record $720,000 in April of
2007 though April's sales count was the lowest in 12 years. So what is
driving the market, and is now a good time to buy?
The Wealth FactorThe Bay Area housing market is significantly impacted
by the level of wealth shared by the people buying homes there right
now. According to the California Association of Realtors, higher-
priced markets have been performing better than lower-priced or
"starter home" areas in terms of the strength of both sales and price.
On the other end of the spectrum, recent sub-prime mortgage market
woes have stifled the ability of people with little money to put down,
and those who have poor or marginal credit; to qualify for a home
loan. This segment is being squeezed out of the market by tougher
lending requirements. With fewer people in the starter home
demographic able to qualify for a home, both home prices and home
sales in lower-priced areas have been stagnant or declining. Whether
you are looking for a starter home, or you are looking to move up; if
you are trying to determine whether or not now is the right time to
buy, it really all depends on 1.) your credit, 2.) your overall
ability to qualify for a loan, and 3.) your ability to come in with a
significant down-payment....

http://groups.google.com/group/szdrealestatel