Posted to: Economy

Mr. Bubble is for the tubs: 2007 Market Forecast



Hmmmm…so the results are in.

The median home PRICE in California is expected to drip, er, drop 2% in 2007 while home sales will drop 7% compared to 2006.

But what about us here in the Bay Area?

Chris Thornberg, an economist with Bay Area-based Beacon Economics claims “The market is flat and the bubble has popped.” Ouch, that is harsh.

While the market has clearly downshifted from record-breaking sales of the past 4 years, what we are seeing isn’t a pop, but a smooth landing, perhaps with a little turbulence. Even though the market is tipping towards buyers, here in Berkeley and Oakland, it is still possible to see multiple offers. What? Multiple offers? Even this past week a home in the El Cerrito hills had 7 offers! Why? Price. What was that? PRICE.

Over the past year the real estate market was characterized by a gap between buyers and sellers. Buyers no longer feel a sense of urgency because inventory is higher; sellers, despite sensing a decline in the market, are still hoping to capitalize on their equity, even at the risk of taking longer to sell.

Since last month we’ve seen interest rates go down, the stock market go up, and gas prices go down. September’s sluggish market seems to have given way to a much more promising October. Buyers are much more optimistic and sellers are getting realistic with their pricing strategies. PRICE. To be successful in today’s market, you may need to look beyond the media frenzy and just have patience. Could we be looking at a revival of the Bay Area’s entry-level market? Buyers can only hope.

Discussion

No comments for “Mr. Bubble is for the tubs: 2007 Market Forecast”

Post a comment

Welcome to East Bay Living Real Estate

Hi friends! We are Krista + Rosie, the brains behind the East Bay Living website. Powered by Berkeley Hills Realty we are a top producing real estate team working {and having fun} in Berkeley, Oakland and the surrounding areas. From buying + selling to DIY + home decor to plumber + gardener recommendations we are your one-stop-shop for all things real estate.

Recent Posts

New Listing: 1086 Spruce, Berkeley Hills
June 4, 2017
By Krista Miller
Albany and Berkeley Make the “Best of” Charts
May 9, 2017
By Krista Miller
How Following Zillow’s “Best Time to List” Tool Could Hurt You
April 25, 2017
By Krista Miller
3405 Wisconsin, 3 beds + 2 baths in the HOT Laurel District
April 6, 2017
By Krista Miller
A Historical Tour of San Pablo Park, Berkeley
March 25, 2017
By Krista Miller

Archives