We've been hearing this question a lot over the past months and with the many things that are happening in the market, there's no simple answer.

With her knowledge, data analysis and past experiences, Rama gives her take on the current situation of the market.

You should definitely watch it if you're thinking of buying or selling today, or even 6 months from now!

WHAT’S THE LATEST QUESTION IN REAL ESTATE TODAY?

The latest question of the day that everybody seems to ask any real estate agent that they know,

“Hey, is the market crashing?

Oh I'm seeing this market's gonna crash.

I think values are going to drop substantially and I'm going to wait six months to buy and see what the market's going to do.”

RAMA’S OBSERVATION ON THE PATTERN OF SAN RAMON REAL ESTATE

I am not an economist. I only see things from the ground level up and yes, the market has definitely stabilized.

It had to cool down. It had been overheated for more than two years and it was unsustainable. And with the inflation going up obviously with the government increasing, the Feds increasing the rates, it has put a damper on a lot of people.

People can't afford because the stock market taking a beating. A lot of people in the Bay Area especially are pulling their down payment money from the stock market.

SO IS THE BAY AREA MARKET GOING TO CRASH?

Now does that mean that the market's gonna crash?

I was just running some numbers yesterday out of curiosity to see how we performed in the last three years. I'm going to give you an example of Windemere in San Ramon. In Windemere, San Ramon numbers went up over 67 percent in the last 36 months. And yes the values have started coming down.

We haven't seen a very substantial jump. It has been at three percent less month over month so if you think that somebody is going to have 67% of per equity wiped out just because they want to sell a home, that's not gonna happen.

A lot of the homeowners in the area have a substantial amount of equity in their homes and they don't need to sell. They're not desperate because guess what the rental market is doing phenomenal and these homes can be rented out for a positive cash flow.

These properties have that much equity in these people have refinanced into rates during the twos uh back two years ago.

I feel that I'm already seeing on the ground level that a lot of homes are getting pulled off the market and being rented out.

EXAMPLES OF REAL ESTATE CONDITIONS OF CLIENTS

In fact I'm facing uh two of my own sellers who are talking about pulling their homes off the market and renting them out because they're not getting showings and nothing is moving along. They both did their calculations and talked to their CPAs and taking financial advice.

They would be in the positive by renting it out rather than losing their homes and selling their homes at this point at a loss from what it was even six months ago.

WHAT’S TO EXPECT IN THE SAN RAMON MARKET AND NEIGHBORING AREAS

So in my opinion this inventory is going to start shrinking.

I'm already seeing lesser and lesser homes hitting the market. This inventory will shrink even more by the end of Q4. What happens in Q1 2023 nobody knows and the buyers are not going to have the choices that they have right now.

So if you are a buyer out there in the market thinking six months from now you're going to find a home and it's going to be cheap, if you think you're going to get a home 67 percent less in value in six months, you've got another thing coming.

But if you're a savvy investor, I think this is a great time because there are properties that are on the market that have been sitting for a while that are negotiating on prices. You could get into a home.

We've been negotiating we've been getting our clients into homes at a lower price so there's an opportunity and you really need to see and look at the opportunity that you have.

 If you have any further questions just give me a call I'm Rama Mehra with Asante Realty and you can contact me if you want any further advice. We're always happy to help you out. Take care! Have a great day.

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