Meet Denise Smith
Professional Resume
Success Stories

March 2007

There's a lot of talk these days about the so-called real estate "bubble" in the Bay Area. People come to me asking if they should buy or sell their properties now or wait until things "pick up" again. I simply sit down with my clients and help them to separate fact from fiction.

The chief economist for the California Association of Realtors indicates that there is no bubble. If you review the indicators from last year, they do not suggest any drastic changes. If interest rates rise at all, they will do so only in small increments.

Back in 1979 when I started in this business, interest rates were as high as 19 to 20 percent. Over the past 10 years, however, interest rates have been at an all-time low.

People are still buying, selling, and refinancing--and I don't see property values declining either. What you don't see as much of, however, are the multiple offers that occurred a few years ago--which only happened as a result of properties being listed below market value to encourage bidding wars. Now is a great time to refinance your current property to decrease your monthly expenses, consolidate credit card debt, or even to provide money for home remodeling.

My advice to first-time buyers is to purchase a home within the next 12-to-18 months to avoid being priced out of the market. For investors, I suggest taking a look at multiple-unit properties. Vacancies are up, which could result in your being able to get a good deal from an owner who needs to sell. With adequate reserves set aside to cover vacancies and evictions, you can position yourself to take advantage of this market.

You can still make money and find good values in the Bay Area. An experienced broker can help you navigate through the process and avoid the pitfalls of which a less-experienced broker may not be aware. For example, properties that don't move in this market are due primarily to overpriced listings from sellers who only bought the property to resell it after a few years. Overpriced listings that don't sell do a disservice to the seller. A competent broker can help you determine the best listing price for your property or advocate for you when you make an offer for less than the seller's bloated asking price.

I am always happy to chat with you about your options. Give me a call today at 510.482-8200.

Dare to dream!

¾Denise Smith