A recent article in California Real Estate (trade publication of the California Association of Realtors) refers to the current California real estate market as a Market in Limbo – Everyone wonders how low the bar can go.

In the I-680 Corridor (Walnut Creek, Alamo, Danville, San Ramon, Dublin, Pleasanton), we have most likely seen the majority of price readjustment. There may still be more to come, but it shouldn’t be as significant as what occurred in 2006/2007. Homes priced in the bottom third of the market will continue to receive more of the pressure for price reduction.

The number of real estate sales transactions will continue to decline but again, not as drastically as in the last 20 months. This is bad news for Realtors as there are fewer transactions to divide amongst the 200,000+ California Realtors. This will lead to a decrease in the number of real estate agents practicing in the state. CAR predicts a decrease in active membership of 15% to 20% by the end of 2008.

This throws another factor into the mix for people thinking of buying or selling real estate. In addition to worrying about the local real estate market, housing prices, affordibility, available credit and mortgage money – people will also have to concern themselves with whether or not the agent they choose will be in business long enough to see their transaction through.

The best advice here is to only work with full time agents that have a viable business plan, resources and flexibility to limbo as low as the bar will go!