Jonathan, Both Buyer and Seller in Pleasant Hill, CA

When will the Danville, CA market hit bottom?

Asked by Jonathan, Pleasant Hill, CA Wed Sep 24, 2008

I plan to purchase a home in Danville, CA (or Alamo or San Ramon) next year. I will be moving up, looking at the $850K to $1,000,000 market. I believe that property values have decreased significantly in the last year (circa 10%) and am wondering if the market intelligence is that the prices will continue to decrease next year. When will know that the local market has reached bottom?

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Answers

2
You might want to do your homework and research, research, research.

Go to trulia, go to zillow, go to realtor.com, go to redfin.com --- all excellent sites. Look at the houses and then look at the similar homes for sale AND sales of houses for the past 6 months. The prices decreased quite a lot -- it is scary.

Danville and San Ramon are not the same. San Ramon has cheaper houses on the market right now and they continue to decrease in value because builders are still building them!!!!

Remember, real estate agents get commission based on how much you pay . Accordingly, the more you pay for the house, the more your agent will make. So do your homework and you will save money. if you do your homework, you will know that the FHA limits for conforming loans are going back to much lower amount, and that means that even more people will be priced out of the market. Thus, the houses will be on the market longer and the prices will decrease further. The new lower limits will start in January.

Good luck!
0 votes Thank Flag Link Mon Dec 15, 2008
Hello Jonathan,

Sadly to say, is possible to know that you have hit bottom only when the market begins to move up. Danville and San Ramon home values have been somewhat insulated from the Valuation Declines elsewhere in Contra Costa County due to the supporting value of their excellent schools in the form of San Ramon Valley Unified School District. In this area, unit sales increase in August over July yet median home prices declined a bit. This could be well to the fact that upper end loans, being more difficult to achieve have resulted in slower to stagnant home sales in the upper end (now that FHA jumbo loans are available only to $729,750).

At http://www.VickieSellsHomes.com you can find reports on median home values easily or by clicking on the median home prices tab on http://www.BestTriValleyHomes.com for the cities you mention. However, that is not all of the story. You will find that there are "bands" of pricing. While the upper end has stagnated, there is good activity in the $800,000 to one million dollar price range.

Upon your request I would be most pleased to provide sales reports over the past 90 days in the price band of interest, or to provide overall market reports for the same.

Please contact me with any real estate questions you might have. I would be pleased to provide data that would help you draw your own conclusions about the current status of our real estate market. Additionally I would tell you that I live and work in San Ramon and my children when to the SRVUSD schools although my office in Danville and my daily tasks spread over into Alamo. I have first-hand experience in the areas you are researching.

Additionally, you may find valuable and informative information on my websites at:
http://www.BestTriValleyHomes.com
http://www.VickieSellsHomes.com

In closing, I will say that if you want the resources of a dedicated, experienced agent prepared to help you find the home you want and need, you really should give me a call.

Kindest Regards,
Vickie Nagy
Realtor - Empire Realty Associates
(925) 407-7987
0 votes Thank Flag Link Wed Sep 24, 2008
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