National news is reporting that the housing market is slowly recovering with increases in both home sales and median prices. Markets in many parts of the U.S are noticing some increases in real estate activity. Is it time for some cautious optimism?
Closer to home, here in San Ramon, the Real Estate Market is steadily improving. We are experiencing low inventory, and extremely high demand, which could cause prices to creep up. This is great news for the folks who are underwater in their mortgages and are waiting for prices to improve before putting their home on the market. It is widely thought that this low inventory we are experiencing will lead to price increases. These price increases will help build confidence and equity, and encourage more folks to sell. Over the longer term price increases may slow largely due to the banks revamped and more stringent lending, underwriting and appraisal policies.
Plus, the lure of low mortgage rates is encouraging the idea of purchasing instead of renting. Combine that with lower home prices due to the economy and you have increased demand for existing homes and new construction. This is evident in larger metro areas and particularly in our San Ramon Valley.
Here are some of the major factors that are impacting our market:
Days on the market have decreased. Last August, the average time a house spent on the market was 77 days. This August, the average was 42 days.
Last August there were 111 homes sold here in San Ramon. This year 87 homes have been sold in our fair city. The price a house was listed for vs what it sold for showed a change this year over last. Last August thru this past July, a home typically sold for slightly less than it was listed for. This August marked the first time some homes sold for over asking price in many months. This is our supply and demand at work, where multiple offers are being placed on most homes that go on the market in San Ramon. Hmmmm. Should we be cautiously optimistic? We think so!