A year ago, this month, I wrote telling you that the real estate market for the San Ramon Valley was “about to take off ” and boy did it ever!2012 was a banner year. As a whole we sold more homes in the San Ramon Valley than we have since 2004! And from all indications, I don’t see the market slowing down anytime soon. But, with a real estate market as hot as ours, there are sure to be some who are bantering around the “B” word; BUBBLE.
However, I am not concerned about a “bubble” in our current market. My reasons are based on what has driven and continues to drive our current market, as opposed towhat drove our market previously. This time it is $$$ – last time it was a promise to pay that wasn’t worth the “synthetic paper” it was written on.
Sure there is a healthy amount of speculation in the market right now. Wall Street is making their presence felt, yet again. This time we are seeing large hedge funds and REITs buying homes with cash and renting them out for top dollar. A far cry from Wall Streets previous foray, when they were handing out Triple A ratings on mortgage back securities that were worthless and creating synthetic CDOs that almost bankrupt our economy.
Moreover, we are nowhere near the crazy frenzy of the past, when your Average Joe was buying homes in an attempt to make a $100K or more; just by sitting on the property for a few months. Our previous market escalated too quickly and artifi cially so. Nobody had to put skin in the game; you didn’t even have to “truly qualify” for a mortgage to buy a home back then. Now it’s harder than ever to qualify for a mortgage. Cash is king and its driving prices back up to what, in my opinion, are healthy levels.In summary, the San Ramon Valley Real Estate Market is definitely “Hot” but, we are nowhere close to the market “bubble” we experienced back in 2007.
If you would like to learn more about the facts of our local real estate market, how they impact you and your home’s value, please contact your local real estate agent or anyone of the real professionals who advertise in HomeFolio Magazine.
- Greg Boudreau: Make Your Clients Remember You - August 6, 2013
- The Definitive Responsibility of Your Agent Is to Create the Market for Your Home - April 25, 2013
- The San Ramon Valley Real Estate Market: Still Hot- With No Bubble in Sight! - March 20, 2013