The Rest Of The Story ... (In Regards To 2013)

Real estate experts seem to be in general agreement as to the rest of 2013. Here are some observations from Intero's Alain Pinel: 
"Buyers, sellers and real estate professionals have been running so hard trying to buy or sell each and every day of the first half of the year that the heat of summer is giving all an excuse for slowing down a bit. Nothing wrong with that, but we still have five months to go. What can we expect during the last stretch of 2013?
The answer is a tricky one for many reasons. For one, whether the Fed will keep fueling the recovery with cheap mortgage money until the end of the year or turn off the faucet between now and then is key to the level of activity we can expect.
Another reason is the considerable difference we can still observe in the US real estate market between the various states/regions. Some have yet to absorb and digest a massive wave of distressed properties, while others have definitely left the crisis behind and are now enjoying a hot market not seen in seven years.
The last reason for being somewhat cautious about making predictions has to do with the vast differences that exist everywhere concerning the availability and the price segmentation (low-end, “bread & butter” and high-end) of residential properties offered for sale.
It is undeniable that we are seeing a significant improvement, country-wide, in the number of transactions and in price appreciation. We expect the momentum in regards to the number of transactions to continue for the balance of the year. The appreciation forecast represents an entirely different question that needs to be looked at on the level of each local market.
For example, in the nine-county Bay Area market, all counties––if not all towns––are moving at different speeds and not always in the same direction. The only thing these counties have in common this year is a sharp increase in sales prices, 33% on average last month (y/y), according to DataQuick. The counties which suffered the most during the crisis have recorded the biggest price gains. Counties which are traditionally more active (and pricey…), such as Santa Clara and San Mateo, have enjoyed a “more modest” price hike, respectively 17% and 21%, y/y. These two counties suffer an acute lack of inventory relative to a vibrant qualified demand. We could have easily sold nearly twice as many homes over the first half of the year had we had twice as many listings!
As for pricing, appreciation varies greatly. The differences, as far as the Silicon Valley is concerned, promises to be even more obvious as we go deeper into the year. During the remaining five months, we expect to maintain the present rate of increase at the “low-end”, roughly between $350,000 and $800,000. In the mid-range, between $800,000 and $1.5M, the appreciation is likely to slow from the torrid appreciation we have seen so far this year. Finally, at the high-end, and particularly over $5 to $20+M, I believe prices will not move up from the level of the most recent sales. We now have more competition at such price levels and, contrary to the other price segments, the supply is outpacing the demand, made mostly of cash buyers." 
Bottom line: it's been an amazing first half of 2013, and the second half doesn't look like it'll change significantly. We still need many more homes for sale to meet the demand. The pace of appreciation, which has been so dramatic year to date, will begin to mellow just a bit. It's a great time to sell, and a great time to buy. Now is the time to put a plan together. Call me any time, and we'll make sure you get the most from our local real estate market!