What about real estate values?

Real estate markets are really local markets. Unlike the stock market, they aren't as affected by national or global news and trends. While the mainstream media is reporting a "mortgage crisis" and "plunging real estate prices", the real estate market in central Contra Costa County, Northern California, remains active.

Contra Costa County homes have averaged an annual appreciation of 12% in the past decade. On average, a Contra Costa home doubled in value every 6.1 years. Over the decade we saw appreciation of 197%.

The Bay Area economy is strong. Many East Bay neighborhoods offer mature, stable communities with excellent schools, a wonderful climate, and access to San Francisco's world-class cultural community.

The market here began to shift away from sellers in the fall of 2005. Values held well in 2006, but in 2007 local home values declined 5% to 8%, depending on location. This is comparable to what we experienced during the period 1992 to 1995.

With current interest rates and a market that favors buyers, this is a great first time buyer or move-up market.