crater

Will there be enough agents to go around?

People who’ve “always wanted to get into real estate” usually wait until there’s absolutely positively no doubt that real estate is back! back! back! Then they get their license and join a brokerage. It makes sense intuitively, which means it’s neither a particularly good idea nor a particularly bad idea. It’s just an idea.

balloon soaring

“Bay Area Home Prices Near Record High as Sales Soar.”

“Bay Area home prices are nearing their pre-recession all-time highs as sales all around the Bay soar, according to a recent report by CoreLogic, the La Jolla-based real estate information firm,” says Mike James of Coldwell Banker. I’m sure Mike knows that Silicon Valley prices equaled their previous peaks several years ago, then moved on from there. “The median price of all new and existing homes in the Bay Area in June (the most recent data reported) was $660,000, a 6.8 percent rise from a year ago and the highest level since prices hit their peak of $665,000 in June and July of 2007.” I’m also sure Mike knows that top-end Silicon Valley prices didn’t peak until early 2008.

pole vaulter

Will higher rates make it easier to buy?

One of the favorite real estate questions on the Internet these days is “will higher interest rates lower home prices”. It’s a question that assumes a nice, clean, direct correlation between mortgage rates and the Fed’s fund rate that doesn’t exist even in a simple world, let alone the real world, let alone the real world of the past few years. But to anyone asking this question, I can tell them with a high degree of certainty that the answer is “no”.