February Pleasanton Market Update

The Pleasanton real estate market continued its strong early Spring showing in February, with strong sales activity and low inventory. Low interest rates, low inventory, and pent up demand from last year combined to propel sales to levels not seen since May and June of last year. Inventory of available home remained low, ending the month at 122 homes for sale total, 71 of which were over $1 million

The low end of the Pleasanton real estate market, under $1 million, continued to show strong sales activity after a sluggish 2006. Inventory is down marketly since the last half of 2006, leading to some price stability and even multiple offers on occaision. However, buyers are still cautious about what they are willing to pay, so even in situations with multiple offers there is not the wild bidding that characterized the market in 2004.

The midrange market segment in Pleasanton in February (between $1 million and $2 million) showed an increase in sales activity and inventory, although inventory remained well below the levels of last summer and fall.

The high end in Pleasanton (over $2 million) continued to show gains in sales in February, with pending sales improving over January. Inventory remained relatively flat for the first part of the new year.

Let’s hope this early Spring showing is an indication that the housing slump in the Bay Area is behind us. Only time will tell, but for the moment, the market is much stronger than the media, which reports on primarily national data, is indicating. Keep a close watch on the two i’s…. interest rates and inventory. Upward changes in either could stall the market as we head towards Summer. But for now, things are looking up.