Bay Area housing update, EP.
My wife and I were visiting properties in Alameda with a local realtor this past weekend. What a difference a year makes.
Prices still high, but we were surprised to find that we could actually afford something. I use the word "afford" in a Bay Area context. A 1600 sq. ft., 3BR 2BA townhouse in the desirable "Harbor Bay" area can be had for $350,000. Another property we visited, best described as a "patio" home, also 3BR, 2BA with ~1600 sq. ft., was asking $414,000, down from original $430,000. On the market for about 45 days. This house was relatively new, modern architecture, also in the Harbor Bay area. We're going to try and lowball this one with a $370,000 offer.
Lots and lots of properties on the market, despite the historic low interest rates. The realtor indicated that stuff was still selling, but the housing market has definitely shifted to the buyers favor.
There were several properties on the market for over 100 days, and many that have dropped the asking price by 10-20% over the original asks. Prices are definitely down from earlier this year, but YOY I believe they may not be negative yet. if you want a modern 4BR in a nice neighborhood, you are still looking at $500K to $600K. I believe that many of these sellers are in for rude awakenings.
I am concerned however, that if we buy a property now, we could find ourselves in a hole 6 months down the road. I could see Bay Area property continue to devalue by 20% from here. One the other hand, interest rates are very favorable - 6.25% for a 30-yr fixed (1 pt).
Warp |
