CAR (California Assoc. of Realtors) released numbers for this year.
Peak Month Apr-07
Peak Price $747,260
Aug-07 Median $710,380
% Chg From Peak -4.9%
-4.9% isn't bad. The media has Sales and Price confused. That's what consumers read but prices are not down much considering we've had a double digit return in the pass 4 years. The negative price change also reflect the Subprime problem so we're still in good shape. If we did a negative 50% on prices then we have a real problem on our hands. However, if you do the math on a $400k home w/14% interest versus that same home at $800k at 7% interest the payments are pretty darn close. The good thing of buying at $400k is that your property taxes are lower but finding that "perfect" home might not be at $400k. Conclusion, if you're a buyer and found a home that you know you will not find again..buy it. As for seller's, your home doesn't have as much "equity" as you think it does, it was unrealized gained to begin with. The good thing for seller's is that once you sell you can buy in low. It's all relative. Home ownership shouldn't be a gamble. Get into the right loan, pay your mortgage and enjoy your home.
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