The last two weeks, Xstine and I made some house-hunting trips. At the moment, I believe that the end of 2008 will be a prime time to buy a house in the Bay Area if you plan on staying at least another 5 years. In many counties, prices have fallen over 25% with supply volume soaring. I'd like to catch a deal before 2009 when non-conforming loan limits drop. This coming winter, a cyclically low season, will be the perfect time to do so.
My God it's a disaster out there. We went out to Brentwood, the edge of flat earth, and found massive tracts of abandoned new construction. It looked like a city that tried to cash in on rising property taxes, but with no facilities to keep anyone there. Nothing but endless residentials. A surburban wasteland.
It's absolutely hilarious to me that angry forum posters on Zillow.com are threatening them with legal action, claiming the site's price estimate algorithm is destroying their property values. Aside from some isolated errors, I'd say their house values are being overestimated, and if they want to sue for "defamation" or whatever, they need to show proof that the site cost them damages. Which means you sell for significantly more than the estimate. Which none of them are going to be able to show because prices continue to plummet.
We decided we like the beautiful Concord/Walnut Creek area, which has had excellent price drops and lies in mostly convenient, comfortable location. A local Fry's Electronics and Rasputin's Music didn't hurt either. With this spring taking such big hits (with the exception of February), I am quite excited that such a great deal has come along in our lifetime. If this sounds predatory, so be it. Americans need to learn to spend only what they can afford.