Article on front page of Yahoo today about market recovery...what do you think? True or not?

Step 2:

Second, because so few new homes are being built, first-timers will start buying existing homes from owners who want to move up but have been trapped by the dearth of buyers. Their improved fortunes, though, come with a big caveat: The prices of new homes are now lower than comparably-sized existing homes. It's as if used cars are selling for more than new ones. That can't last. So move-up buyers are going to have to accept less than they had hoped to get for their current homes.
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And if that move up buyer has negative equity then who cares right?

More than one user on this board who is 'in the know' has commented that the move up ladder is completely broken.
 
California's history is filled with boom to bust to boom, rinse and repeat ad infinitum. So, of course, things will get better. The money question, however, is when. Compare the Yahoo! piece with the opinionof SF Fed President Janet Yellin.

While it's nice to read other people's opinions, to decide what's best for you, I would suggest (1) defining your target market, (2) get as much information as possible about the trends for the last five years and the reasons for those trends, (3) see if the reasons for those trends have changed or no longer exist, and (4) draw your own conclusions from that. While some data points and conclusions regarding the national market might apply to what I think your target market is, most of them won't.
 
The "move up" market would be a great place to find buyers because they can qualify for a loan and have a down. Unfortunately, no one is buying their houses. The move up buyer is competing with too many REO's trying to sell their homes, yet the place they are moving up to hasn't dropped in price enough yet. Anyone who thinks they can move up should probably sell their own house as fast as possible at whatever price and rent for a year or two.
 
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