“Prices have never been so low,” Jean Powers, Broker at Kane and Associates in Alameda, and State Director for the California Association of Realtors, said last Friday about Oakland's summer real estate season projections.

“Rockridge, Highlands and Lower Maxwell Park are all low. When else could you buy a home for under $250,000?" continued Powers who has been in the industry for more than 20 years. "While it may take eight years for equity to build on a home bought today, buying is better than renting if you can afford it."

Though we may have forgotten what a summer real estate season looks like after two recession seasons, buyers-market alerts and an increased supply could make this an active season, despite Oakland's wide real estate listing spectrum.

Nationally low prices, low mortgage rates and a continued supply of distressed homes on the market are leading many experts to say that now is the best time to buy a home - if you can get a loan or pay in cash. 

According to Trulia, a website for homebuyers, sellers and renters, Oakland is one of six coastal cities where the cost of homeownership is slightly more expensive than renting. Their conclusion: the decision should be made on a case by case basis.

Because Oakland’s real estate market is diverse with some neighborhoods listing far more expensive properties than others, the decision to buy versus rent depends on where you are searching as well as your personal situation. Nationally, Trulia found that it is more affordable to buy in nearly three quarters of America’s 50 largest cities. See its 2011 Q2 rent versus buy index.

On Friday June 17, the median price for homes in East Peralta, Trulia’s least popular Oakland neighborhood among site visitors, was $169,000. In Upper Rockridge, Trulia’s most popular Oakland neighborhood, the median price was $798,500.

County wide the median house price for an existing single family home was $465,550 in May 2011, down from the 2010 May median of $507,210 according to data from the California Association of Realtors. or CAR. 

Are buyers already showing higher market confidence? Somewhat - national monthly home sale trends have largely followed upward trends in the last six reported months with the exception of February and the last report, April. In California, monthly home sales dipped 5.8 percent in May, with the median single-family home sold at $291,760 according to CAR.

Before you commit, make sure to study the market by neighborhood and even by block. Experts recommend that you compare rental prices for similar properties.

Useful Links

The Mortgage Calculator

How Much House Can You Afford?

How Much Second Home Can You Afford?

NAR: Housing Affordability Index

Realtor.com home-values estimation tool

5 New Rules of Real Estate

A tale of two zip codes in Oakland

Trulia home buyer links