It's a Great Time to Find Your Dream House

Many factors have come together in recent weeks making now a great time to find your forever home:

• Rates have dropped creating an opportunity to lock into a 30 year loan at historically low interest rates.

• Moving your equity to a more stable location can help protect your current investment.

  The Bay Area should escape worst of the states economic slump. "Real estate losses in the Bay Area will not be that bad, and the rest of the economy should be doing pretty well," Ratcliff said. "The Bay Area is positioned to do better than the rest of California for the next few years."

Real estate is cyclical. In the past, the market has repeated in roughly five year cycles (the recent 9 year up cycle is historically unusual, which could indicate that we are over due for a correction.) This could be a predictor that the market may be at the beginning of a five year downward trend. Desirable neighborhoods in Albany, Berkeley, Kensington and Oakland have held relatively steady during past downward trends.

• For the sake of your investment, real estate agents recommend holding a property for a period of longer than five years. Purchasing a home that can meet your long terms needs will minimize any short term shifts in the market. The market traditionally responds to cyclical downturn with five years of rebound and gain.

• Competition has decreased as some buyers sit back and wait for the market to declare itself. Decisive buyers have the advantage. Although prices have not dropped in desirable locations, prime properties in prime neighborhoods are available without the heartache of multiple offers. Your odds of being able to purchase the first house you fall in love with have increased.