SF Peninsula Real Estate Guru

The Federal Reserve Board’s recent actions to lower a key interest rate and pump additional liquidity into the financial markets has helped to stabilize the stock market.

I believe the current credit crunch will work itself out in the next month or so. People can still get mortgages. Companies can still borrow money.

Overall, the economy is in good shape.

Moving forward, real estate will continue to be a prudent investment on the Peninsula. Supply of residential property will continue to be limited as most land that could be developed has been already built on. Most local governments have low or no growth policies in place. Considering that population will continue to grow (in large part due to immigration to California), demand will continue to increase.

Baby boomers love real estate and many are now entering their prime investing years.

Ken Harney writes that Baby Boomers, Still Buying .

Baby Boomers like to own real estate. And one out of four boomers believe they will purchase additional real estate in the next year.

August has been a slow month for real estate, as it often is. This year the sub-prime issue has slowed the market even further. My sense is that after Labor Day weekend when families are done with summer vacations and the kids are back in school, listings and sales will both increase.

 Stay tuned - I will keep you posted.