WSJ-“Yes, The Housing Market Has Rarely Looked Better”?

by cindy ~ September 5th, 2009 ~ Atherton, Los Altos, Los Altos Hills, Menlo Park, Palo Alto, Portola Valley, Real Estate in General, Statistics, Uncategorized, Woodside Comments (82)
« Weekly Bay Area Real Estate Market Watch ~Atherton Sales for August 2009 »

Has the Atherton, Menlo Park or Palo Alto housing market rarely looked better?  The Wall Street Journal article “Yes, The Housing Market Has Rarely Looked Better“, is an interesting perspective based upon the latest data from the Standard and Poor’s/Case Shiller housing price index.  The Index showed that real-estate values increased this past quarter over the first quarter of 2009, making it the first quarter-on-quarter increase in three years.  The index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31.  The National Association of Realtors reported sales volume of existing homes was up 7.2% in July from June.

So the fifty million dollar question is, does this mean real estate prices in Atherton, Menlo Park, Palo Alto, and the rest of our area here on the peninsula; Woodside, Los Altos and Portola Valley included, have hit bottom?  Our area has been notorious for home values in the past, compared to the rest of the nation.  There is no way to really know if it is true that prices have hit bottom or not but, analysis of sales in our area shows a lot of recent sales activity in all price ranges. 

My recommendation is don’t try and time the market, and buy now.  Interest rates are still low, and we expect more inventory after Labor Day.  Prices are down, and it is possible to negotiate a great deal whether you are a first time home buyer or a move-up buyer.   Make your move now, but make it a thoroughly informed move.  Make certain your financing is already lined up (you are well into the pre-approval process and through underwriting), make certain you have analyzed statistics to move into the area that you can afford that will render the best return on investment, and make certain you have seen enough inventory so you are satisfied with your decision on which property to purchase.  Schools matter and so does location.  Keep in mind that you won’t find the perfect house unless you build it yourself, but you can get pretty close.  Now is a great time to enlist the help of a Real Estate Agent and make your move.

http://online.wsj.com/article/SB10001424052970204047504574386802310702622.html