Is now a good time to buy a home in bay area?

[cardinal2007]

If I were in your position I would at least wait for a while, at least until April for 2 reasons:

1. All things indicate that prices will continue to drop in all except the most expensive of areas (of which 900k - 1.3M does not qualify (welcome to the Bay Area!)), and the most inexpensive of areas (of which are already about 70% off their peaks).
2. There is a lot of talk of new proposals to spur demand, including tax rebates, and 4.5% mortgages for new purchases (I doubt they would offer that on Jumbo loans so unless you're willing to go down to 875k you probably wouldn't qualify there). These may go through next year, and if you bite too early you would miss this opportunity. Though this is less of an issue, since you will probably have to book the 250k as income, and that would automatically bump you off any eligibility for a tax rebate scheme there might be.

Also where are you interested in? If you're not familiar with the area at all I would wait at least 6 months after moving here, at least that way you would have a good familiarity with the area. Now that gas is cheap you can drive around and see what different neighborhoods are like, you can also speak with co-workers who might live in these areas to see what they say about things.

[san carlos]

Home prices have dropped about 15% in the most stable of communities this past year, and more in some of the outlying areas of that were hit harder. I agree with sonarrat -- there have just been a bunch of layoffs, and probably more coming. This will be the second wave of negative pressure on the housing market. But there has been some bounce in San Carlos and San Mateo as some homes have sold pretty quickly and at list price. Not sure if that's a false bottom or not....but despite the layoffs, there are still some folks with jobs and $$ out there.

[SFRE415]

Originally Posted by johnalbright231

I'm getting relocated to Bay Area for work - my company is giving me $250K in relocation money to buy a home - but I must buy within 12 months of move - February 2009 - I'm worried about home prices falling but don't want to lose on this amazing relocation benefits. What is the consensus on home price forecast in Santa Clara and San Mateo counties for the next 2 years....- I am looking at single family homes in the 900K-1.3M range.

Hello John. Welcome to San Francisco Bay Area!!! San Mateo and Santa Clara Counties are some of the most well to do areas in the country with a very educated workforce. They are also among the most desirable areas of Bay Area to reside due to proximity to San Francisco, Silicon Valley, Coastal areas, lower crime rates (with exception) and great weather. Not all the cities and towns in Bay Area have suffered from Real Estate slump. If you are considering San Mateo or Santa Clara counties and can afford the 900k-1.3m range and want very stable communities, look into Burlingame, San Mateo (West Side), San Carlos, Los Altos, and a few more. These cities are very stable in terms of Real Estate value. Let me know specifically what kind of home, (size, # of bedrooms, etc) you are looking for and I can help you.