Oakland condo prices are continuing to plummet, dropping more than 13 percent, on average, from a year ago, according to the Chron, citing a report by the Polaris Group. The median condo price is now just $272,500, the lowest it’s been in nearly a decade and $42,500 lower than it was last year at this time, during the worst part of the recession. But the questions is: Why aren’t people taking advantage of these historically low housing prices?
It’s a curiosity of human behavior. Call it the herd mentality. When Oakland condos were overpriced in 2005 and 2006, buyers lined up to bid on them. And then when home prices drop dramatically, people stay away. Yes, it’s much more difficult to get a loan these days, but plenty of people who earn enough income to easily qualify for a low-interest mortgage are still remaining on the sidelines.