The recent changes in the mortgage industry and the tightening of credit is starting to be felt in the San Ramon housing market. With foreclosures starting to show up in the area, the rising inventory of homes on the market and (according to today’s MLS stats) the significant drop in closed transactions, it appears that our local housing market may finally feel the heat.

This from Mike Tacconi’s blog:

What does this mean to the real estate market?

• Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This, along with the increase in national inventories, means now is not the time to hold out for the “best” price possible.
• Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If market conditions change, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Just this week, many lenders have stopped offering no-Doc loans, and some lenders have even pulled back on all forms of stated loans. As market conditions continue to change, a buyer’s pre-approval status can disappear even more quickly, delaying or spoiling the deal.
• Subprime and Alt-A refi candidates, especially those with ARMs scheduled to reset over the next 12 months, need to act now – even those with a pre-payment penalty. ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets.

What does this mean to you as a real estate agent?Not only is it essential to protect your clients and your transactions, it is your fiduciary responsibility. If you have any ongoing transactions that rely on this type of financing, you must work closely with those involved on both sides. As an educated mortgage professional, I will utilize my experience and resources to help you and your borrowers to navigate through these turbulent times. Don’t leave your buyers or sellers in the hands of random mortgage providers. I’m local, accountable, and you can trust me with your reputation and good name.

San Ramon buyers and sellers need to keep a close on eye on the market to help them make the best informed decision.