Beats the heck outta me, or anyone else for that matter, but I’ve just run across an interesting opinion on the subject that I like because it agrees with my own experience.
The intensity and longevity of this boom continues to amaze me, and this isn’t my first rodeo.
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.
“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.
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”.
Baby Boomers aren’t budging from their homes, says the California Association of Realtors, and it’s not because they’ve forgotten where they put their car keys. At least that’s not the main reason.
How do you feel about a pool in your back yard, maybe taking up all of your back yard? Still looking for public schools rated A++ or better?
Maybe yes, maybe no. It depends on how old school you are.
“With summer now in full swing, the Bay Area’s luxury market is as hot as the weather. Several Coldwell Banker Previews luxury market reports have come out over the past week, and nearly all are pointing to a robust housing market – especially in the high-end.”