Despite the continuing scourge of Covid-19, it’s been a pretty good year for homeowners in the San Francisco Bay Area. For home buyers, of course, it’s been a somewhat different story. This is a summary of our wild ride in 2021.

Consider a San Ramon homeowner:

Starting at the lower end of the market – condominiums.

In the last quarter of 2020, the average condominium in San Ramon 94583 sold for $527,737. In 94582 the figure was $671,087.

Fast forward to today. In the last quarter of 2021, the figures were $667,303 for 94583  and $776,846 for 94582. That represents a 26% increase in value in 94583 and 16% in 94582. In just one year.

Now let’s look at detached single family homes in the same period of time.

The average sale price in 94583 was $1,265,677. A year later, this rose to $1,636,024. An increase of 29% .

In 94582, average sale prices were $1,391,863 in 2020 rising to $1,954,355 in 2021.  That is a whopping 40% increase.

These figures are all based on information in public records and cover a significant number of sales.

It’s fairly easy to understand how we got to this position. There are unprecedented numbers of people wanting to buy homes in our area and few that are for sale. This imbalance creates an environment for multiple offers and the result is escalating sale prices. Many buyers from outside our area can easily afford our prices and this will continue until affordability becomes a problem.

Will prices fall back at some point?

Despite these astronomical increases in home values, most economists are of the view that we won’t see a market collapse. Now we do know that there are likely to be multiple increases in interest rates this year and this will significantly effect people’s buying power though. Homes will then sell more slowly, with multiple offers quickly becoming a thing of the past, and inventory levels will increase. This does raise the possibility that we may see some form of price corrections in some areas, although as stated above, if we believe the economists, it won’t be the bursting of a bubble.

Is 2022 still a good time to sell?

Right now, there are still more buyers than homes for sale, and interest rates are very low. So provided you don’t wait too long, and your home shows well, you should be able to sell for a great price. Once interest rates start to increase, maybe not so much.

Would you like to know what your home could sell for in today’s market? Contact us now, and we’ll provide you with a detailed Comparative Market Analysis together with suggestions for any cost-effective changes or improvements that you may want to consider. That’s completely without any obligation to use our services. We are here to help in any way we can.

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