As of October 2022, home prices in San Ramon rose by 5.1% compared to last year, bringing the median selling price to $1.5 million. This rise in pricing is coupled with fewer homes being sold in the San Ramon area compared to last year. On average, homes in San Ramon typically sell within 24 days of being in the housing market in 2022, which is 16 more days than the previous year. Although the numbers have decreased, the housing market in San Ramon is still highly competitive.

Housing Market San Ramon, CA

According to multiple reports, the housing market in San Ramon is very competitive, with many homes receiving multiple offers at a time. San Ramon is a very pleasant area, just 35 miles east of the Bay Area. Known for its scenic views and weather, it is one of the best places to live in California.

The San Ramon area offers its residents a distinct suburban experience, especially because many own homes. This part of California is also known for being relatively quiet and peaceful. With easy access to the Half Moon Bay State Beach, it’s perfect for families who wish to convalesce in their free time.

San Ramon also receives an influx of residents from metropolitan areas, offering the perfect balance between the suburban and the metro. Approximately 3% of homebuyers sought to move out of the metros to San Ramon. Easy access to coffee shops, parks, and top-tier restaurants make the residential experience in San Ramon worth the move. The area also hosts 19 public and 4 private schools with excellent ratings, including Windemere Ranch Middle School, Dougherty Valley High School, and Bollinger Canyon Elementary School. Therefore, it is unsurprising that San Ramon was named the best city for young families in California.

How Interest Rates Impact the Housing Market

Higher interest rates generally have a negative impact on the housing market because it forces buyers to pay significantly more to get a mortgage on a home for the same price. When interest rates are relatively higher, the housing market becomes highly competitive, with buyers being in a position to make offers above the asking price.

The housing market is more or less driven by consumer demand, so interest rates are expected to be more affordable as housing prices increase. However, demand decreases when interest rates are higher, and the housing market becomes less competitive by default.

However, it is essential to note that interest rates have only begun to rise in 2022 after being at historical lows from 2013 to 2021. The recent rise in interest rates on mortgages is nothing to fear. As rates of interest increase, wages and salaries grow correspondingly. These rates also do not affect the value of your property or housing prices, so you don’t have to worry about that.

Rising Interest Rates in San Ramon, CA

Data from October 2022 shows that typical home values in San Ramon are approximately $1.8 million, with a 1-year value increase of 8%. From these figures, it is easy to tell that the housing market in San Ramon is reasonably competitive.

The current interest rates on mortgages in San Ramon, CA, are 6.64% for a 30-year fixed loan, 6.08% for a 15-year fixed loan, and 6.44% for a 5-year ARM (Adjustable Rate Mortgage).

Several factors contribute to the increasing interest rates and rental rates in San Ramon. There has been considerable growth in the population and job market in San Ramon, causing housing demand to rise. San Ramon is also an excellent investment hub for real estate investors who can benefit from a sizable rental income on a return upwards of 0.57% from their tenants. The city is also a sensible choice to invest in a family home. San Ramon’s proximity to Silicon Valley has granted it the status of an emerging tech hub with a flourishing digital industry. Therefore, the area attracts many tech professionals, entrepreneurs, and businesses.

The city also houses big companies like GE Digital, Chevron Corporation, AT&T, and the headquarters of Galena Biopharma, contributing to its job market growth. The job market is expected to rise to 41.8% within the next decade. This means more buyers and tenants for rentals will be moving into the city in large numbers, creating opportunities for real estate investors to receive a positive and steady cash flow.

Many neighborhoods in San Ramon boast high safety rankings, excellent schools, first-rate healthcare, and low unemployment rates. These neighborhoods include Twin Creeks, Bollinger Hills, Twin Creek South, New Castle, and Rancho Ramon. The city has experienced a 0.16% growth in population over the last five years, home to over 75,000 residents.

How to Buy or Sell a Home in San Ramon

Without the proper knowledge and tools, navigating through the housing market can be a daunting task. If you do not have the skill set of an experienced real estate agent on your side, you could make a serious blunder. Buying or selling a home is not an endeavor to be taken lightly, especially if it is your first time. A professional can help you secure a deal, help you obtain waivers for contingencies, and win bidding wars for the home of your choice.

To help you make the right decision for you, your family, and your investment, it would be advisable to seek professional guidance. For assistance in buying or selling a home in San Ramon, contact Rama Mehra to ensure your investment and future are secure.