Recent market updates indicate many areas in the State are seeing the housing market going flat. This can be expected every so many years. The housing market goes up, goes down and goes sideways. Over the past couple of years in the San Ramon Valley area we have seen double digit appreciation. We are now seeing single digits.
Here is an excerpt from the article
California single-family home and condominium sales were 37,093 in May 2016, an increase of 2.2 percent from a revised 36,287 in April 2016. On a year-ago basis, sales were down 4.7 percent from 38,921 in May 2015.
“Sales continue to be lackluster state-wide,” said Madeline Schnapp, Director of Economic Research for PropertyRadar. “Without an increase in affordable inventory, high prices continue to depress sales.”
Year-to-date sales (January through May 2016) totaled nearly 156,000 properties, down 3.8 percent from the same time period in 2015 and nearly unchanged from the same period in 2014. Year-to-date sales in 2014 and 2016 were the lowest since 2008.
“Price appreciation took a breather this past month amidst lackluster sales,” said Schnapp. “How many buyers are there in the Bay Area willing to spend a million dollars on a 1,200 square foot, 2 bedroom, 1 bath home built in 1961? At some point buyers are just going to say, ‘No Thank You’.”
Within the 26 largest California counties, the highest year-over-year price appreciation was concentrated in counties of the greater Bay Area: Santa Clara (15.1 percent), Contra Costa (13.1 percent), Monterey (12.4 percent) and Santa Cruz (12.2 percent).”
To see what is going on in our area let’s look at one City – San Ramon home sales for the past 12 months to determine the trend.
As the chart indicates San Ramon home sales are starting to flatten. This may be temporary, yet home prices have increased significantly and the buyer pool is getting smaller.