Housing Crisis in America Today.

work in the financial district in San Francisco, CA at the second largest bank in the country. The hottest place in the city to buy real estate is in SOMA, next to the bay bridge. Remember those Dockers commercial with the F line and the Bay Bridge…well it has done wonders for the zone, plus one of the most beautiful ballparks in MLB does not hurt.

But as prices of real estate continue to drag or drop in many places. Is it still a good time to stay on the sidelines and watch what happens? Yes. I don’t see any improvement in the housing market in any area. Banks are not making it easy for people to refinance old loans that have adjustable high rates after teasers intros.  It causes people to sell before they lose their home to foreclosure because mortgage payments jump. That’s one stakeholder selling a home, add them up.

Then there is the household who just got laid off from one of the big corporate companies, whose profit making are shrinking.  After the layoff, this type of stakeholder will first live off their equity with an equity line of credit and then start thinking about selling if they cannot find another job…if the stakeholder is a specialist then it will be hard to get another similar paid position. Perhaps a pay cut and an apartment might be a better environment, less stressful. Another stakeholder wants to sell their house.

Then there are the builders who want to sell you and I a brand new home with freebies like a jacuzzi, top of the line French showers, and high end appliances on marble floors. Don’t forget to throw in a flat screen lcd screen with a free trip to France for two, among other gifts. Another stakeholder wants to sell a house.

Finally, don’t forget the banks who are selling foreclosed homes, on the sidewalks of city halls around the country. What does this all mean? There is nothing wrong with hanging around the sidelines. We have not reached the bottom line of the housing crisis. I have two apartments, one spectacular residence in a high rise in Silicon Valley and a studio in San Francisco. I can tell you living in apartments is not bad at all right now.

What are the signs to look for? Growth in the economy from the benefits of green technologies in terms of industrial savings. Increase in jobs, and location location location is still the best piece of advice you can get. If you live in a cool neighborhood call Levis and ask them to do a commercial about your neighborhood and landmarks, and it will help people visualize living there and drive up desire to be there as a homeowner.

Be cool off the real estate, like my friend artist Pete Doolittle look into the future and be patient in San Francisco…occupy your mind on other great things the city has offer.