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-- Posted Friday, 18 July 2008 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Friday, July 18, 2008 “Phenomenally accurate forecasts” Finally, some good news for those who have always wanted to live in the Bay Area but couldn’t afford it: the median price of a home has fallen below the half-million-dollar mark. With prices back to levels not seen since 2004, will Northern California now be inundated with Okies and Rust Belters looking to start anew in the vineyards of Sonoma? The median price of a home there fell nearly 27% since last June, to $389,500. The real estate crash has been nearly as dramatic in Napa, where a 23.7% fall has brought the figure down to $444,000. Even in San Francisco, where prices have held up relatively well, an 11.9% drop since last June equates to a current $726,750. The table below, from DataQuick, tells the whole story: 
Reported DataQuick: “The price barometer fell an unprecedented 27 percent from its record level a year ago as more sellers settled for less, lenders unloaded more aggressively-priced foreclosures and more sales activity shifted to less- expensive areas, mainly inland. Credit remained tightest for potential high-end buyers on the coast, where sales were generally anemic and prices showed signs of increased erosion, the real estate information service reported.” 
The bad news is that migrants to California are going to be disappointed, if not to say distraught, when they see what $726k buys in San Francisco – assuming they can qualify. That seemingly formidable sum is not going to put one on Telegraph Hill or even on Lake Street, although it might buy a fixer-upper on the “bad” side of Potrero Hill. As for an $846,000 digs in Marin, you could get an in-law cottage in Sausalito for that kind of money, but you’d have to drive quite a ways north before it would get you into a family-size house on a well-trafficked street. Personally, we’ve got our eye on Pacific Heights, where the likes of Robin Williams and Linda Ronstadt live. If prices in that neighborhood continue to fall at their present rate, and Colorado values hold steady, we’ll be able to swap “even” sometime around 2037. ***
Last Chance to Sign Up Because of family vacation plans, I will be able to offer the Hidden Pivot Seminar only once this summer – on two consecutive weekday evenings, July 23-24. If you’ve been thinking about signing up, now is the time to do it, since once this class is full there will not be another opportunity to take it until fall. Click here, and then on the “Upcoming” tab to register; or here if you would like more information as well as a detailed description of the Hidden Pivot Method and a free Hidden Pivot calculator (our latest model, perfect for beginners). *** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 18 July 2008 | Digg This Article | Source: GoldSeek.com
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