Why Are There No Homes For Sale in San Ramon CA?
As Accredited Buyer's Representatives my husband, and Danville CA real estate partner Steve, and I are hearing this question many times a day from our home buying prospects. We have had our own theories about the lack of available inventory of homes for sale in San Ramon CA and surrounding towns, but recently the Contra Costa Association of Realtors (CCAR) published a newsletter that cited a San Francisco Chronicle article: "Home buyers face dilemma with shortage"; Kathleen Pender; published 3:28 PM Saturday March 9, 2013, with some expert opinions and hard data on just why there are so few homes for sale in Danville CA and surrounding towns.
Email us if you have questions or if you want to work with us on developing your buying strategy.
Here are the key points taken as excerpts directly from the Chronicle article.
Although listings are increasing on a month-to-month basis as the busy spring season gets under way, Trulia Chief Economist Jed Kolko predicts they won't start rising on a year-over-year basis for a year or more.
-- Fewer foreclosures are hitting the market. "California did a good job of disposing of its backlog" of distressed properties, says Zillow Chief Economist Stan Humphries.
-- Many people still owe more than their homes are worth. If they sold now, they would have to come up with extra cash to pay off their loan. Although prices have rebounded from their lows, 23.3 percent of homes with a mortgage in San Francisco, San Mateo and Marin counties were still underwater in the fourth quarter of 2012, according to Zillow.
-- Even if they are not underwater, many owners won't sell for less than they paid. If they bought near the peak, it may take a while before they are ready to budge.
The median price paid for a new or resale home or condo in the nine-county Bay Area was $415,000 in January. That's less than halfway between its low of $290,000 in March 2009 and its high of $665,000 set in June/July 2007, according to DataQuick.
-- Many people, even if their homes are worth more than they paid, won't sell because they are afraid they won't be able to buy another house. "It becomes a game of musical chairs; they are afraid to get out because they can't get back in," Humphries says. This becomes "a self-reinforcing cycle" that keeps homes off the market.
-- The housing bust put new construction on hold.
The shortage comes at a time when demand is rising in the Bay Area, not just from regular buyers but from investors, second-home buyers and foreign buyers, especially from Asia.
In spite of these factors contributing to the current low inventory, homes do come to market and they sell quickly. If you are a serious buyer you need to do your homework on the neighborhoods where you want to live, and when you begin your home search you need to have your solid loan pre-approval letter in hand. When a property of interest comes to market you can then move quickly and compete for your new home. Email us if you have questions or if you want to work with us on developing your buying strategy.
Comments(0)