Expert: Sue Bernstein - 3/30/2005

Question
Hello Sue,

Right now I'm living in the San Francisco Bay area and am planning on moving out to an apartment soon.   It would be nice to eventually own my own home since I will be getting married in June.   Both my fiance and I have decent jobs and make decent income.   I find it very hard to believe that prices of homes have reached to the point where even both of us cannot afford a decent place.   Even the townhomes and condos are so ridiculously priced to me it's not even worth it to live here.    

Prices cannot be going up like this forever.  
Even some real estate agents have said that this is not sustainable.   
 
What are your thoughts and comments?
Do you feel that prices will eventually drop down to an affordable level?    

Thanks

AJ  

Answer
Dear AJ,

Anyone who purports to know what will happen with the market doesn't know what they are talking about.  The only thing I can tell you is that historically the market rises and then falls.  Whether prices will plummet is highly unlikely (but noone knows) or the market may just slow down.

I know this may not be the answer you were looking for but it's the best I can do.

Sue Bernstein