Home & Garden Columns

The news headlines resound of doom and gloom for the real estate market; but what is the back story? Most of these articles refer to the national scene, and to certain parts of the country that are the hardest hit. “18 percent drop here, 16 percent drop there, no relief in sight.” 

In fact, severe corrections in average selling prices occur in areas where the income and employment figures are hard hit. The Bay Area has always been somewhat immune to these factors. Minor corrections have to occur when prices go up too fast, especially when the “flippers” exit the market. 

Flippers are, of course the folks who just buy and sell for a profit. Prospective homeowners have little to fear from this correction in the market, since most of these buyers will stay in their homes for at least 5 years.  

In the meantime, many prospective homeowners could benefit tremendously from the current market by being able to negotiate a purchase price for the first time in years. 

The current supply of homes is higher than it’s been in quite a while, enabling buyers to pick, choose, negotiate, and obtain great concessions.  

Then, sit back, get tax benefits from a mortgage deduction, enjoy the bargain you made and wait for the seller’s market to come back. It always has! 

Tim Cannon has been licensed in real estate in Berkeley since 1978. He is the owner/broker of BerkeleyHome Real Estate at the corner of Hopkins and Monterey.