Yes, I am emphatic here. I am not telling like others, expecting growth in real estate, but seeing ground reality from my past bidding experiences.
When I saw endless crowd, many stock rich multi-millions people from major companies, is coming in 3411 Rayanna ave, I realized the competition.
Today DOW crossed 24000 mark. As long as stock market is going up, we will never see slack in bay area prices.
I have personally seen this bay area going up and up last 20 years, elt1 may be 40 years, never come down except economical crash. When crash came in year 2000, RE was down almost 10% in bay area, but in 2008 (RE down) it was 25% bay area, but 40% out skirts of bay area.
For sure, next recession we will not have like 2008 RE period. I have not seen any down trend between 1995 and now except two times.
When are the chances this economic crash happens? Likely in 2019 or later, but expecting any changes in 2018. S&P is expected to grow 16% or more next year.
**If there is a crash next year, I am definitely wrong, but my guess we will not have it next year (2018) **
Real estate may likely go up another 10% when S&P grows 16%.