There are a number of ways to look at this in evaluating the process, many believe the floor will be around 2010, but interest rates may be considerably higher after the election, and it will be harder to qualify. Do not figure on an upswing until at least 2012, more like later than that.
Right now, without negotiating, you can get a 3000+ home in the Morgan Hill/Redhawk area with upgrades on the inside, some hardscape, but a dead lawn for $120 sq ft.
On Sattui street in Morgan Hill, an old Shea neighborhood, which were nice homes and I think a really nice area overall, there are 5 homes in the $130 per sq ft range, and it is only a matter of time for them to start throwing each other under the bus and lowering their prices.
If one really wants to buy right now, just wait till the holidays. If you work it, you’ll find someone desperate in Dec that will drop another 10-20% off there asking price. Target someone in Redhawk, Paseo Del Sol, that bought in the late 90’s early 2000 in the 2’s or less. They’ll still be in the money, and happy to get out.
