This whole thing about the real estate market sagging could be depressing. And it doesn’t look like it is going to go away soon. On the channel 2 news tonight they were saying that between 2004 and 2006 the value of a Bay Area home jumped nearly $100,000. The news also mentioned that experts are saying that by the end of 2007 the average San Mateo and San Francisco home will drop by around $10,000 in value. In Oakland values are expected to drop by about $24,000. And they say it’s due in part to the low interest loans people took to buy a home and now those interest rates are rising causing many, many foreclosures. In fact, foreclosures are now at an all-time high.
But when I step back and look at the big picture, the good news is that it seems the high tech industry jobs are starting to come back into the Bay Area with more jobs available each month. This all means that if you are in a position to buy a home now you are in a great position to make a good profit if you decide to sell that house a few years from now. Assuming the housing market will go back up, which it usually does based on previous marketing trends.
REAL ESTATE TERMINOLOGY:
Blende-Rate Mortgage – The average trust deed or mortgage covering more than one parcel of land.