Declining-marketsThe image to the right reflects Countrywide?s ?declining markets? for the western U.S. The brighter the area, the more severe the expected decline in home values.

The East Bay isn?t ?white hot,? but you can see that is experiencing some heat. Notice the Central Valley ? still not as bad as Southern California, Las Vegas and Arizona, even though Stockton and Modesto continue to have some of the highest forclosure rates nationally.

Purchasing a home in a decining market carries two important considerations for home buyers:

  • Larger down payment is required
  • Lending guidelines will be stricter

The declining market designation along with other factors like more suppy and less demand will result in continued downward pressure on home prices in the East Bay.

Sellers needing to sell have to consider being one of the three lowest-priced homes in their price point. Savvy sellers also have their homes staged in a manner to be one of the top three most attractive homes.