Market Update

The media continues to spread a message of gloom and doom about the real estate market. While the reports should be listened to and deeply considered, always keep your individual situation in mind if you are currently active in the real estate market.

CNN reports that the "glut of homes hits 16-year high." Keep in mind that this statistic is on a nationwide basis. That information is helpful for a large snapshot of the market and for a look at macroeconomic trends, but you are presumably buying or selling a home in the Bay Area. Well, today the San Francisco Chronicle calls the market in East Oakland a "dead zone," and finds the inventory of homes for sale to be rising, and homes in escrow to be flatlining. But even that requires a closer look. That same article mentions that there have been 65 homes sales in Oakland over $1 million since May.

So, it is same old story that the rich are getting richer and the poor can't buy homes. And, the market is undergoing a correction period more than a freefall or collapse.

What this means in common sense terms is that if you have money, you should have no problem continuing to buy real estate. Mortgage lenders are tightening up their regulations. If you are a buyer, you are going to need 20% down and a great FICO score in almost every situation (and you should consider great tools like the Monthly Mortgage Assistance Programs). If you are a seller, you might need a little patience and a lot of courage to price your home lower than you expected.

It is a complicated market there. It always has been, and it always will! If you would like to discuss the East Bay real estate in more depth, let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.