And for the first time in years, it's a great time to buy a home in the Bay Area.

Over the last year or so, I have been advising many of you who planned to move to a larger home within the same area, to wait until the market settled back to a more normal situation. It has taken a while but I now believe that times are much more favorable for you and you can plan your move with confidence. Once your home has sold, you will now be able to consider a range of properties, secure in the knowledge that a realistic offer is likely to be accepted.
In 2004 and 2005 we started the year in a fast moving sellers market that became even more frenzied as we moved into spring and summer. Consequently, prices spiraled out of control, multiple offers were the norm and buyers were left wondering what had hit them as time and time again, sensible, realistic, full-price and better offers failed to be good enough to agree a sale.
By last spring and summer, many homes were selling for far more than the sellers would ever have dreamed possible. Towards the end of the year though, things started to cool off rapidly. Many people paid more for their homes last year than they could expect to sell them for now. We have no shortage of inventory today, much of it having been on the market for many weeks. Many sellers will consider offers well below asking price.
If you are thinking about improving your standard of living and trading up to a new home, times are good! Sell first and you are in a very strong position. Maybe you could have sold for more last year but bear in mind that this also applies to the sellers of the home you want to buy. The differentials have eroded so your dream home may be more within your reach today than it was then.
If you are moving out of the area, this is also a good time to move. Many real estate markets across the country are in a slump right now. There are bargains to be had. Again, if you sell first, you are in a very strong position. Remember the golden rule - He who has the gold makes the rules. This is very true in real estate matters.
Even if you are trading down, provided you are moving to a less expensive area, you should do well to sell now. You dont have to go too far to find places with a surplus of homes for sale and that means that with cash in your wallet, your offer is more likely to be accepted.
Homes that are priced sensibly are selling! Not as fast as last year, but there is still plenty of activity. Provided you dont have unrealistic expectations you should be able to achieve a sale within a relatively short time and once you have sold, you can use the strength of your position as a buyer to get a great deal on your next home.