Does Warren Buffett's comment on housing apply to our local San Francisco Home Sales?

Berkshire Hathaway's Annual Meeting dubbed "Woodstock" for Capitalists by the Wall St. Journal was full of insights and even a game of bridge between Warren and Bill. Warren Buffett and Bill Gates, that is!

Does Warren Buffett's comment on housing apply to our local San Francisco Home Sales? You bet!

"In the last few months you've seen a real pickup in activity although at much lower prices," Mr Buffett said, citing data from Berkshire's real estate brokerage business, Home Services of America Inc., which is one of the largest in the U.S.

In California, medium and lower-price homes - under $750,000 - have been selling more, though there hasn't been a bounce back in sale prices, Mr. Buffett said. "We see something close to stability at these much-reduced prices in the medium to lower part of the market."

Here's how to apply to San Francisco listings:

1. If you're a buyer in the medium and lower price market, be prepared for competition but you'll get a great deal.
2. If you're a seller in the medium and lower price market, be realistic about your home's value and it will sell quickly.
3. If you want to move-up from a lower price home and into a more luxury condo or house, you're in the driver's seat. Your "starter" home should sell quickly and you'll have bargaining power for your next purchase. Make money on the buy this time!