Submit Feedback
Member Login
Blogs Homepage
Featured Entries
Recent Entries
Recent Comments
Tags
My Starred Entries
Create A Blog
RSS FeedThe Market Is Moving in The San Ramon Valley! |
May. 7, 2009
Categorized in: San Ramon Valley Market Update
Have you been waiting for the bottom of the market to be passed before committing to a home purchase? If so, it looks like now is the time to make your move. Certainly that is the case if your target area is San Ramon or Danville. Take a look at the graphs below.
Both of the graphs relate to real estate activity over the past year in Danville and San Ramon. The upper graph is the strongest indicator of what is happening in the market as it tabulates all sales agreed of single family homes and condominiums on a month by month basis over the past 2 years. Certainly, there was an effort at recovery in the beginning of 2008 but it was half-hearted at best and the real estate market continued to decline.
This year we see quite a different picture. Not only has there been a solid four month pattern of rapidly increasing sales contracts but also, as can be seen from the lower graph, inventory has declined at an amazing rate. There are just insufficient numbers of homes being listed for sale to meet the present demand.
As we enter May, there is just a 2.5 month supply of homes available. In any situation, this is what would describe a strong sellers’ market.
The question on everybody’s lips is “Will this recovery continue?”. Economic news suggests that it will.
Last week, the Fed signaled that the recession may be easing, and this news was echoed by the Economic Cycle Research Institute (ECRI), who also said that the recession would probably end by the time Summer is over. The ECRI, whose leading indicators have a solid track record of predicting turns in the business cycle, said that enough of its key gauges have turned upward to indicate with certainty that a recovery is coming.
Stocks in general also had a great April. In fact, the S&P 500 had its best month in nine years, gaining 9.4%, led by the financial sector.
In addition, there were several good economic reports to note as Consumer Confidence for April came in at its fourth largest gain in the history of the survey, while Consumer Sentiment also came in better than expected. The improvement in the way consumers are feeling is likely influenced by the improvement in Stock prices. And people are buying homes.
So how does this affect you and what action should you be taking now?
Well if you are a potential buyer, these are good times. Interest rates are at historic lows and homes are more affordable than they have been in years, although unless we see more homes coming on to the market, prices are likely to start moving up so any delay in action could cost you money.
If you are a seller, the good news is that there are lots of buyers about at last. And as most sellers are also buyers, the news is good for you as well. Get your home on the market now and get ready to move forward with your plans.
The above analysis is specific to Danville and San Ramon. If you would like to see the graphs for other areas, give me a call on (925) 997-1585 or email bernard@bernardgibbons.com and I will be happy to get them to you.
Word of the Day
Ask the Experts
Question of the Day
Member Login
Join RealTown
Request Password
RealTown RSS Feed