So here we all are – bouncing along the housing market bottom.Â While this bottom bouncing doesnâ€™t feel great, trends indicate that the worst is behind us here in the Bay Area.Â Â So does that mean itâ€™s the time to buy?
Once the foreclosure mess really begins to clear up, say housing economists, the traditional drivers of the housing marketâ€”demographics, affordability, loan availability, employment and psychologyâ€”should take over.
While we are still working through some foreclosure activity in the Bay Area many of our local housing markets are performing well – with stable to increasing median prices, brief market times and decreasing available housing supply. Â
The Bay Areaâ€™s highly desirable and world renowned quality of life continue to support strong future demographics – attracting a well educated, affluent and diverse population (after all â€“ who doesnâ€™t want to live here!).
Housing affordability is way off its lows Â in the Bay Area â€“ when in 2006/2007 only about 25% of the local population could afford to purchase a home â€“ while more recently it is up to near 50%.
Credit, while still tough to get, has been loosening over time and will continue to become more accessible as part of the larger economic recovery currently underway.
The local labor market has also recently improved, with job growth and declining unemployment occurring in all three major Bay Area metro areas, especially in Silicon Valley.
So then trends do indicate that yes â€“ take advantage of the current bottom bouncing before the upswing is clearly well underway â€“ before it become a missed opportunity!
And, check out the inspiration for this post -Â “Why It’s Time to Buy” from the Wall Street Journal.