When do we think the market will bottom out?

A few hours ago a client asked:

"Have the prices on Single Family Homes in the Noe Valley or Potrero Hill been falling?
When do we think it will bottom out?"

Two loaded questions...

My response: So many people enjoy reading tea leaves and try to gaze into the future to predict the market. We all know a stopped clock is correct twice a day. By the time the media tells us the market has bottomed prices will have already started rising and the best homes are snapped up. An example is the recent sale last week of 733 Sanchez Street, receiving 5 offers it went over it's asking price of $1,450,000!

Perhaps the question you should be asking yourself is; are you ready to buy and does the property you are looking to purchase suit your needs? If the answers are yes, then go for it. If not stay on the sidelines, like everyone else. Being a homeowner is like a rite of passage. You either buy or you don't.

When I bought my first home, it was the best of times, it was the worst of times. In 1983 the recession was all in the news. Layoffs were regular along with the highest interest rates we'd ever seen. At the time everyone I turned to for advice said I shouldn't buy. It took chutzpah and nerves of steel to go through the process. For almost a month or two, I grew accustomed to the overwhelming mortgage payments which were so much higher than my rent controlled apartment. I questioned what I was doing in a home I could barely afford, afraid I could lose my job at a non-profit each and everytime there was another scary news story about the economy.

A few years later I used the home as a spring board. My life partner and I went to buy our first investment property. Believe me when I say I experienced the same jitters. We read more of the same scary economic news. Two years ago I bought another investment property - A year ago it was declared the height of the market - It's still worth what I paid for it and I have no regrets.

One of the best investors I know, buys regularly like clock work every two years. Each time he does, he complains about how high the prices have gotten. It hasn't stopped him and he's built quite a portfolio.

It all starts with a first step - only YOU will know if it's right for you.

Mike Ackerman, CRS e-Pro
Zephyr Real Estate - Noe Valley Office
ABZ@ZephyrSF.com 415-695-2715