A Little Perspective

It's been a nerve wracking few days on the stock market.  But here's a little perspective:

For most prospective home buyers, it's probably best to focus on the 5-year time span which would be the typical minimum hold time.

As they say, past performance does not guarantee future results.  And the stock market it not necessarily the best predictor of future property values and the stock market is not the economy and the economy is not the stock market.  Nevertheless, if you think  of your real estate purchase, at least in part, as an investment this will give you some context.

Department of Good News

A couple of recent reports are bolstering the anecdotal stories that the San Francisco Bay area real estate market is improving:

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According to a report from Chapman University's Anderson Center for Economic Research, the consumer confidence level of Californians is the highest it's been since before the beginning of the recession in late 2007:

Chapman University, California Consumer Sentiment, 9/10/12

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Foreclosure Radar reports that foreclosure filings (notices of default and notices of sale) were down sharply in August.  This continues a mostly downward trend over the last year.

06075 - Foreclosure Filings

The same trend, although not as dramatic, is seen in the statewide numbers as well as the surrounding counties (Marin, Contra Costa, Alameda, San Mateo and Santa Clara).