SF Peninsula Real Estate Guru

I have been a real estate broker since 1978 so I have been through a few market cycles. In the late 1970s, the market was very active and prices increased. In fall 1980 interest rates started a climb to 16 and 17%. The market slowed and on the San Francisco Peninsula, the makret turned flat and in some cases dropped slightly. This trend continued for several years and then the market settled in the mid 1980s and sales activity increased. The late 1980s was again a very robust market and market values increased substantially. The market slowed again in the early 1990s (maybe because of the earthquake more likely because the local economy slowed). Again the mid period of the decade was a period of stability. The late 1990s was again a very robust market fueled in large part by the dot com boom. The market peaked in fall 2000 and again we had a flat to declining market. Unlike previous decades, the market heated up sooner and 2004 was a record year. The market continued fairly strong until this fall when the sub-prime crisis took some steam out of the market.

I can tell you from personal experience, the up years were always much stronger than the down years. I have represented hundreds of home buyers over my 29 years in the real estate business and I can probably count on one hand, the numbers of buyers who regretted purchasing a home.

As long as one can afford what they buy, I believe, real estate will always be a great investment - especially here on the Peninsula where the economy is strong and there is little or no land left to build new houses.

Interest rates at around 6.5% are attractive, by historical standards.

In the current market, a buyer has a wider selection and a greater opportunity to negotiate with a seller without the pressure of competing with several other offers.

If you have a long-term perspective and can afford to do so, this is a good time to buy real estate.

Some may say: “I will wait until the market goes up”. The problem is one doesn’t know the market is going up until it is too late to buy at the bottom.