Profile picture for TanuSharma8

Are the home prices going to shoot down again wthin a couple years

I want advice on whether to buy a house now or wait for this sudden rise in prices to become normal again. What do u predict ? Are the prices in bay area going to go down a little by the end of next year?
  • July 17 2013 - Warm Springs
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Answers (11)

Profile picture for Sharon Lewis
If we knew  what the market was going to do, like the stock market, there would be a lot more wealthy people in this country. I think at this point the prices in the Bay area are going to continue to rise though as it is still coming out of 'recovery' In your lifetime you will see the market go down  again. Everything is cyclical. If you need a place to live, buy or rent a house depending on what you financially feel comfortable doing.
When you look at the price of homes in the 30's,40's,50's etc, you will see a steady rise in price.
Go in intelligently when you purchase, get a comparative market analysis done.
  • July 04
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Profile picture for mike3505
An agent will always say this is the time to buy, it's how they make living. Those who say " housing market is still far from being at its normal conditions" is making a completely false and inaccurate statement. Those weren't "normal conditions" They were highly inflated prices that were unsustainable which is one of the reasons the market crashed. Prices have risen more than will be sustainable again. Investors are purchasing far more homes then ever before and first time home buyers are not. Interest rates will rise eventually but when they do prices will fall. This year home sales continue to decline from last years numbers and inventory is increases. More homes are having prices reduced because they are not selling. The lower selling prices will cause price evaluations to decline. You can certainly purchase a home now but consider what they were selling for 2 years ago when making an offer along with condition ect. A home that sold for 200k in mid or late 2012 probably isn't worth 250k or more. Buying at prices close to 2005 or even 06 will cause you to be underwater in the near future.
  • July 04
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In Warm Springs the inventory will eventually bump up a bit since the sellers are just trying to cash out their equity by waiting.  

At year end the demand is smaller but the inventory is lower also.  

The key is the local economy which is robust.  

We go through a cycle every 6-10 years and personally I feel we need some chill to bring the prices to an affordable level,

Sam Shueh
Keller Wms Cupertino Realty
  • June 18
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In my opinion, during the housing bubble local governments collected high amount of tax. These revenue were mostly spent and everyone gets their raises. Unfortunately it is very difficult to take back people raises. One solution is to layoff. Another is to inflate home price as much as you can to bring back some of the tax. But you have to be sure that the people who pay for these high prices can afford them. And you have to make it seems affordable to them until the market is saturated and that they have put enough of their life saving into it that they cannot take a lost. So how can you do this? Well at six percent it was a historic low rate. Then it went down to the impossibly low rates of below three percent and allow to come back to around four percent. So how long will it be like this? As long as the government want to use it to boost the economy. Eventually inflation will take over and people will be pay more. So when enough people get pay a lot more than they do ten years ago, they can comfortably pay a lot more. Then rates can go up and price will be depressed. But this is the best solution for everyone right now. A different President may not be so kind to all of us.
  • June 17
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In my opinion, this could be the best time in our generation to become a first time home buyer. The U.S economy still is recovering and the housing market is still far from being at its normal conditions. 

However, for first-time home buyers, this is still the best time to buy a home. Affordability, is the key and it tops all other reasons!. 34% decline in the housing market coupled together with historically low interest rates at around 4% for a 30-year, fixed rate mortgage, makes it  still the best time to buy a home. Comparing these two important indicators of real estate with the current rental market, makes home buying much more cheaper and sensible. "Trulia figures that buying is cheaper than renting in 98 out of America's 100 major markets". 

First time home buyers are different in the sense that they were not the victims of the housing market crash and the financial turmoil of 2007. They were not home owners then and so were able to escape the age of negative amortization, adjustable rate mortgages and other risky mortgage products that left many homeless. Considering they're buying a home that is 20-30% below the housing peak price and along with low interest rates, makes it a heck of a great time to for first time home buyers to buy a home.
  • November 05 2013
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The Real Estate Market has been so volatile, it's difficult to predict what will happen month-to-month, let along in a year or two's time.
Right Now..there is a strong demand for homes and not enough homes on the market which has lit a fire under new home builders who are working hard to meet that demand.
Interest rates are low so potential buyers are out looking. Prices are not rising that quickly so I think it's a good time to buy now.
My thinking is that Real Estate will continue to slowly recover and interest rates will increase in the years to come.
  • September 09 2013
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A crystal ball would be great!  If anyone finds one please let me know!

Doing your own research on this is your best option.  An agent making concrete statements about this may end up in trouble, especially if their advice has negative outcomes.

I think the best solution is to understand your own specific requirements and goals.  Many people look at purchasing real estate as a long term investment and are not soley focused on the year-to-year outlook.  Economists have given many different opinions about the housing market future, but they're just opinions.  I believe the most applicable data is what is currently happening in the market.

  • July 17 2013
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Profile picture for hpvanc
You have to do your own research and form your own opinion on which risks you are willing to accept. Make sure you do it before engaging an agent.

My opinion is that there is a very high likelyhood that they will drop from the current level. The problem is I don't know when it will happen or by how much, current prices are not supported by economic fundamentals so either the economic situation has to change while housing prices remain relatively flat until they come back into line, or values have to drop. I'd like to buy an income property, I'm sitting tight for the moment.
  • July 17 2013
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Profile picture for Outer Banks N C
Buy here, the prices have not gone up at all yet so for my area the answer is NO.
  • July 17 2013
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I predict this: if you buy now, and they prices go down later, you will feel a bit sore but you'll own a house. If you wait, and prices go up, you will wish you had bought now.

More to the point: a lot of people now wish they'd bought last year or the year before, and some of them relied on the opinion of bloggers. Not a one of those bloggers will help these people who sat by while the market rocketed by them.

On the other hand, not a single blogger who tells people to "buy now" will reimburse them for their losses if the market goes down!

All the best,
  • July 17 2013
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If I only had a crystal ball... honestly, theres no real way to know what the future brings other than the fact that interest rates will continue to climb. Across the country we are looking at our new normal, which will hopefully continue to rise  slowly in value with each passing year. Any significant jump will only lead to an eventual fall. Steady rise is much preferred, in my opinion.
  • July 17 2013
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