According to 
It will take time to stabilize the real estate market but I see a lot has happened these last three months alone. Prices have declined a lot already and new sellers are much more careful when pricing homes. It’s about time, what took you so long?
The opening line pretty much captures the mood of this market: “The waiting game between Bay Area buyers, sellers and lending institutions continued last month as sales dipped below 4,000 for the second month in a row,…”
“”The lending system has been in lockdown mode the last half year, … Sure there are price declines out there,… But it’s not realistic to think many sellers are going to drop a $600,000 or $700,000 asking price down to $550,000 just so a buyer can finance with a conforming loan.” What a good point but is it really unrealistic? What about people who have to move, or are relocated or what about death in the family and divorces? How much these situations have impacted real estate in the past.
This is the news I’ve been waiting for: “The median price paid for a Bay Area home was $548,000 last month, down 0.4 percent from $550,000 in January, and down 11.6 percent from $620,000 in February last year. Last month’s median was 17.6 percent lower than the peak median of $665,000 reached last June and July.” Even though we are talking about the median price which doesn’t reflect everything across the board, it still points to prices lowering, one way or another.
Meanwhile, real estate offices around town play a bloody game of wait and see. It’s survival of the fittest or survival of the ones who attract and keep the most agents. Right now, the only alternatives for any office to survive is to find enough agents to pony up enough desk fees to keep the offices open. Ah, wonderful california who forces agents to work with a broker. I see the pros and the cons.
