The Sky Is NOT Falling
Though it certainly seems that way, and the markets worldwide are reacting very actively to negative reports, corporate takeovers, government bailouts, etc. etc., I still say the same thing to my buyers: buy for the long term! Let me say it again: buy to hold and build wealth.
If you are a speculator, then there are some fantastic bargains to be had in the suburbs. In San Francisco, there are some neighborhoods where bargains can be found. In our "blue chip" neighborhoods, however, well-funded buyers may not find the bargains that they hope to. Interest rates are remarkably low, demand continues strongly for housing in the City, and people who are looking for "tangible" assets to invest in are flocking to real estate.
I tell my sellers that pricing is particularly crucial at the moment; comps from even 2 or 3 months ago may not be valid barometers of what's hapenning. Depending on your neighborhood, we can evaluate the best positioning to maximize the return on your investment.
My opinion is that the sky is not falling; just ride out the storm. Real estate, just like any other commodity, is cyclicle and those that buy and hold generally are rewarded in the long term. This is actually a great time to acquire property as the pool of buyers has been diminished by tightened lending.