Reading the newspaper has become a trial for me in the last week. The stock market drop, the demise of Countrywide Financial (and its takeover by B of A), the devaluation of the dollar, and now the state of California's economy...all of these make me want to hide my head in the sand for a couple of years. Will there really be a recession, and just how severe will it be? Will we finally see repercussions in our Sunnyvale-Cupertino "Real Estate Oasis"?
According to Leslie Young, chief economist for the California Assoc. of Realtors, the areas being hardest hit in California are the outlying areas where there has been overbuilding. The resale market in California’s major markets will continue to be strong. In fact, the closer you are to a metropolitan area, the better the sales are. In the million-dollar plus price range, there has been essentially no change from 2006 to 2007. Let's hope that this trend can continue in the future.
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