Benefits of Housing Market Bubble
2008-04-08 09:44:53
The period after a housing market bubble can be a great time to look for a new home.
Like the dot com bubble that came before, the bust period is a good time to see which markets are stable and buy into those markets on the cheap.
One prime example will be the real estate market in Sacramento vs. San Francisco peninsula. New homes in the outskirts of Sacramento has declined upwards of 60% from their market highs, and many people are foreclosing on their homes.
In the Bay Area, house prices are still relatively robust. General decline in the San Francisco Bay Area peninsula has been at most 10% of their relative high. In many areas, including Los Altos and Palo Alto, prices has remained stable, and even slightly increased.
In the long run the current short term housing market instability will smooth out and markets will revert back to their normal self.