Local real estate agent George Kypreos agrees, saying, “2019 is going to be a good year for Las Vegas. 2018 was fantastic. We had a 15 percent appreciation.
Is 2018 a good time to buy a home in the Bay Area?
The Bay Area covers a lot of areas, so I’ll answer your question with a focus on Silicon Valley, which still covers quite a few cities.
2018 has been a challenging time to be a buyer, but it will likely get better over the next 6 months (until Jan 2019).
Home inventories have been at record lows, so there is very little to buy, while the demand continues to be strong. Because of this, prices that are already at record highs, continue to increase and there is no sign of anything changing long term.
Short term, we’re finally seeing a seasonal slowdown in demand and some increase in inventory, creating a seaonal balancing of the market and a pause from the price increases.
Real estate cycles tend to be around 7 years for the upswing and 3–4 years for the flat/downturn. We are about to start year 7 in 2018.
There is however no guarantee that this cycle is going to be 7 years, so it is extremely difficult to make a prediction of when the next downturn will start. Google and other large tech companies are doing quite well with lots of cash on the books and continued hiring/expansion, so it doesn’t look like there’s much risk of layoffs in the foreseeable future.
Timing the market in general is very tough, just ask anyone who has been trying to time it over the past 7 years as prices have more than doubled.
The key to answering your question is how long do you plan on owning the home before you plan on selling. The shorter the time-frame, the more risk you’re taking. If you plan on owning for 7–10 years, you will very likely own it through the next correction and come out ahead. If there’s a chance that you might need to sell it in 1–3 years, you are taking on a lot of risk and should think through your decision carefully.
I’m happy to chat with you offline to show you the relevant data/trends and help you make an informed decision.