After the Latest California Gold Rush

What will 2007 be like for residential real estate in the San Ramon and TriValley areas of California?

This past year marked a year of transition from the most recent California Gold Rush in which real estate values exceeded the rules of Newtonian Law. Real estate prices are finally returning to a normal market level.

Sales transactions in 2006 have decreased by close to 25% compared to 2005, but average sales prices are only down 2 to 3%.

Speculators have dropped out of the market and buyers are being more selective in what they will buy and what they will pay for a property.  We are returning to a more balanced market where buyers and sellers both have power in the negotiations and prices are now based on comparable recent sales prices, not speculation.

This situation is healthier for everyone in the long run.

Real estate remains one of the most stable long-term investments. In Danville, San Ramon, Dublin and Pleasanton, CA., residential real estate prices have approximately doubled in value since 1999.

If you have been following our market trend postings you are aware that we are now starting to see some shifts in the market for the better. New home sales nationally were up three of the last four months and the local real estate board recently reported that closed sales transactions were up 9% compared to last November.

Interest rates continue minor fluctuations remaining mostly stable - around 6% for a 30 years fixed rate loan. Many experts predict rates will fall further in 2007.

The East Bay is leading the state in new jobs.  The demand for homes will continue in our area which is seeing “build out” in several communities putting pressure on they supply and demand dynamics that run real estate prices.

Given the stability of interest rates, the return of consumer confidence, the easing up of “bubble mania” & “doom & gloom” hype by the media, we expect that Spring will bring a slight increase in selling prices and transactions.

Image from http://www.library.ca.gov/goldrush. 

San Ramon - TriValley Area 

David Lereah, the National Association of Realtors’ chief economist, says  “Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity.  These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced."

We've been reporting for some time now that good deals still exist for first-time buyers in the San Ramon and TriValley areas. The Harper Team works with several mortgage specialists that have specific programs to help first-time buyers to get into a home.

The Harper Team monitors over 50 Real Estate and News Feeds daily to bring you information pertinent to the San Ramon Valley & TriValley real estate market including the communities of Danville, San Ramon, Dublin and Pleasanton. We welcome suggestions.

Search our blog articles via the Tag Cloud - just click on a word that interests you.

Buy/Sell Real Estate

San Ramon & TriValley Areas of California

This morning Mortgage and Treasury prices fell (giving back yesterday’s gains), after the government said retail sales in November increased the most since July, suggesting consumer spending may sustain economic growth as housing and manufacturing contract.

The Fed yesterday left interest rates unchanged at 5.25 percent for a fourth straight time. Policy makers reiterated that additional rate increases may be needed to contain inflation.

Fed funds futures contracts indicate traders see about an 18 percent probability the central bank will reduce rates to 5 percent before April, compared with 28 percent odds yesterday.

New Law Makes Mortgage Insurance Tax Deductible

Traditional Mortgage Solution Now Even More Affordable

RALEIGH, N.C., Dec. 9 /PRNewswire/ — Home affordability and the housing industry received a big boost today from Congress, which approved a measure that would for the first time allow lower- and moderate-income homebuyers to deduct the full cost of mortgage insurance from their federal taxes in 2007. The provision was included in the omnibus tax bill approved by Congress early Sunday morning.

"Many homeowners who used adjustable and exotic loans to buy houses during the housing boom of the last few years are now feeling the pinch as their interest rates reset," said Kevin Schneider, president of the U.S. mortgage insurance business for Genworth Financial, Inc. . "This new legislation gives homebuyers the option of choosing a low down payment mortgage that offers both tax deductibility and fixed monthly payments. This is an important step forward for U.S. housing."

The legislation passed today makes all mortgage insurance premium payments deductible for homeowners with adjusted gross household incomes of $100,000 or less. It applies to all new mortgage originations beginning January 1, 2007.

Positive forecast for existing-home market

The National Association of Realtors predicts an improved real-estate market for existing homes in 2007, with median prices rising 1.4% this year to $222,600 and another 1% next year to $224,700, says a Wall Street Journal Online article. NAR forecasts that the number of existing-home sales will top the existing quarter's total by 4.6% by the end of the fourth quarter of 2007, the article says. However, the picture for new-home sales is not as good, with the total of new homes sold falling 17.7% this year and 9.4% in 2007, Wall Street Journal Online says.

The Harper Team monitors over 50 Real Estate and News Feeds daily to bring you information pertinent to the San Ramon Valley & TriValley real estate market including the communities of Danville, San Ramon, Dublin and Pleasanton. We welcome suggestions.

Search our blog articles via the Tag Cloud - just click on a word that interests you. 

Welcome to San Ramon Valley Real Estate Prices

Working with home owners moving into the San Ramon Valley from out of state often means working with a severe case of “California Sticker Shock.”

Barclay Law, a recent transplant from Asheville, N.C. to San Ramon, faced this very situation recently when she started looking at East Bay real estate:

“I had heard and read a lot about California home prices, but when you actually start shopping, it’s a real eye-opener. I really had to adjust my expectations and criteria”

Real estate prices in the San Ramon Valley are experiencing some downward pressure and buyers are seeing a little more weight on their side of the negotiating table. Having a strong negotiator is a real plus for buyers in this market.

“I was really pleased by how much The Harper Team was able to negotiate on my behalf. I’m still in shock, but I have a roof over my head and my cats are safe.”

Barclay has a gift for design and decorating. She is also a practitioner of Feng Shui. Her website is Design With Feeling. 

Welcome to San Ramon and congratulations on your investment in California real estate! 

The Harper Team works with many diverse types of buyers seeking homes to purchase in San Ramon: first time buyers, move up buyers and investors just to mention a few. We offer free information and reports for many areas of concern for buyers.

San Ramon continues to have some of the most affordable housing available in the San Ramon Valley. In addition to affordable single family homes, there are several recent condo conversion projects available for first time buyers. Siena Hills, Reflections and Copper Ridge are three such projects helping to bring affordable housing to first time buyers.

For families, San Ramon is able to offer local schools with high state and national ratings. While California High School is bursting at the seams, relief is coming soon with the opening of a new high school in Windermere next year.

When you're buying a home it costs you nothing to use the services of a real estate professional, a Realtor®. Availing yourself the services of a Realtor can benefit you in several ways.

• Intimate knowledge of the neighborhood and community
• Housing market trends
• Negotiation skills
• Expertise with the entire home-buying process

These are just a few of skills that The Harper Team brings to real estate transactions in San Ramon. We are so confident our skills and talents that we offer buyers a written guarantee for our services. If we can't negotiate a substantial decrease in price for you, we will pay you.  

Our business philosophy revolves around client service, helping to inform buyers, and no pressure or hassles. Requesting any of our FREE reports involves no obligation on your part. Calling us on the phone or emailing us with a quick question involves no obligation AND it won't result in us pestering you.

When you deal with The Harper Team, you are not dealing with desperate real estate agents. You're associating yourself with successful professional business people that bring a unique set of syngergistic skills and talents to the real estate transaction.

If you are considering buying real estate in San Ramon, we would like the opportunity to apply for the job of working with you.