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San Francisco Mortgage and Housing Shoppers: Easing Prices Mean Easier Tactics
By Richard BarringtonLocal Lender Columnist
May 5, 2008
San Francisco housing prices have joined the national trend toward cheaper real estate. All things considered though, these declines are still modest on paper, and their real significance may be in what they signal about buying tactics. Meanwhile, the most tangible change in the real estate market is the fall in mortgage rates, which is good news for both buyers and sellers.
San Francisco Prices Slip at Near the National Rate
According to the Standard & Poor's/Case-Shiller Home Price Indices, home prices in the San Francisco area declined by 4.2% for the year ending in August of 2007. This was roughly in line with the rate of decrease for the national index of twenty metropolitan areas, which declined by 4.4% over the same period.The San Francisco area composite includes sales prices of existing homes in San Francisco, San Mateo, Alameda, Contra Costa and Marin counties. The San Francisco area was one of fifteen out of the twenty metropolitan areas measured which experienced price declines for the trailing one-year period.
A 4.2% decline hardly makes the San Francisco market a sudden bargain. However, by signaling an end to the feverish housing bubble, it indicates that buyers can now afford to be more selective in their home choices, and more demanding in their negotiating tactics.
Buyers and Sellers Can Both Cheer Lower Mortgage Rates
While the slip in housing prices may indicate a shift in the balance of power between buyers and sellers, lower mortgage rates can be cheered on both sides of the negotiating table. The beginning of November saw the lowest mortgage rates in nearly six months.Lower mortgage rates means more of the buyer's money can go into the house, and less into the interest expense of the mortgage. That's good news for buyers and sellers alike.
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About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.