The NAR (National Association of Realtors) continues to take a rose colored view of the Real Estate Market, despite what the numbers are telling them. They have called 2006 the third best year for Real Estate, after 2005 and 2004. This despite the fact that sales for December 2006 dropped almost 8% when compared to December 2005. This is all of course based on National statistics, not local.
Locally, for 2006, we did see a rise in value of 3.6% over 2005, but I think there can be no denying, even to the most casual observer, that home values in Oakland, Berkeley, and Richmond have taken a step back. I definitely had buyers who were able to get a lot more house than they could have gotten in 2005 for the same amount of money. I really don't know what to attribute the statistical rise in value, however modest, to the values in 2005.
I do continue to believe that Buyers will be more in the driver's seat this year, and now, more than ever, there are going to be great values to be had.
