I'm getting this question from clients who are interested in investing in real estate, as the appreciation ratio in the Bay Area Real Estate Market is tempting to a lot of people, expecting about 10-30% in appreciation yearly is attractive! regardless of the income the property will be generating and the equity they will be building.
At this time some people are taking one step forward and 10 back as they are waiting to see if the market will crash soon!
The Real Estate Market has been soft for the last couple of months, but that DOESN'T mean that the market will crash! the reason behind of the slowdown, in my opinion, is the recent restrictions on the work Visa, some of the buyers are capable to buy but they are holding back to get clear whether if they should invest their money in the US.
One of the main reasons for 2008 crash, was the bad practices in lending activities and giving loans to people without verifying their capability to pay back, now we have a good system of verifying the capability and monitoring the lending activity.
In my perspective what's happing on the market now is a temporary fluctuation, as the amount of demand for housing in our market has been always high compared to the inventory, and with the expansion that we see for the tech companies, I'm expecting high appreciation ratio will continue to be in a high level for the next years.