San Ramon Housing Market 2012 Update: The San Ramon Housing market has been on fire since February 2012 !! 4th Quarter of 2011 up to January 2012 the Housing market was very quiet. Buyers afraid of the alleged looming foreclosure inventory lurking in the shadows.
Being in the business of Real Estate and selling majority of my inventory in San Ramon, I sensed the palpable change in February. The demand almost increased overnight and at first I could not understand why this was happening. Nothing had changed substantially in the stock market, Bernanke announced that rates were going to continue to be low but what flipped the light switch where overnight we started seeing multiple offers?
May be it was the influx of foreign investors finding the US to be a lucrative investment destination. With prices low, the attraction of getting a conditional green card on the investment of $500,000 or more found investors from countries like China, Singapore, India, Canada, Taiwan flooding the market with foreign cash. The homes that could not find buyers for up to a year, suddenly started getting multiple offers. The local buyers who were waiting on the fence, afraid to make the decision of purchasing suddenly found themselves being left behind by the all cash offers ! From the lowest price point to Millions of dollars, these foreign investors were purchasing homes with cash and terms no buyer with financing could beat.
The cash buyers were not the only buyers we saw this year. Hedge funds, LLC’s both local and foreign, buying portfolios of foreclosed homes from the banks and not flipping them but holding them as long term investments also took the REO inventory out of the market. Turning these homes into rentals for the millions who have lost their homes to foreclosure, short sales and lost hundreds of points of their credit scores.
San Ramon is one area in the East bay that has seen a huge surge of buyers moving here from the South Bay and the Peninsula. Family oriented lifestyle, high rated schools have been persistent driving forces for the movement into this area. Located in the middle of the 580-680 corridor, San Ramon is mid way from the South bay to San Francisco.
In the year 2012, San Ramon housing market has seen the sale of 1053 homes. Out of these homes the breakdown by type of property is as follows:
1. Condominiums- 229
2. Detached homes- 681
4.Town homes- 128
Currently, there are 135 homes pending sale in San Ramon and only 31 active homes in the entire city. Which means we have less than a month of inventory to sell. Compare this from November 2011 when we had 103 active homes, and 58 pending !!
Many sub divisions in San Ramon have seen an appreciation of up to 25%. The New Construction Homes have also seen a massive change. The builders who could not find buyers now have people camping out for weeks on end for their San Ramon new homes. It is a very strong and clear indication of a market rebound that has made the San Ramon Housing market a very desirable one for prospective buyers and a indicator for San Ramon home sellers that the market is finally returning to favor them.
San Ramon Housing Market 2012 Update