Pleasanton & Tri-Valley Market Heating Up

My market meter has been upgraded to reflect the continuing strength of the early spring real estate market in Pleasanton and the Tri-Valley. The turn around has been most noticeable on the lower end, where activity is strongest right now. This seems to be a result of pent-up demand from last year’s slower market, where buyers were content to sit on the sidelines and wait for prices to erode. It looks like a lot of these buyers have decided to stop waiting. The market is strong on the peninsula (no big surprise there… when is it not hot), the south bay, and the east bay. The primary markets seem to be gaining momentum. The secondary markets (Tracy/Manteca, Solano County, etc) are still slow, with lots of inventory and skeptical buyers. As it has been in the past, it is the primary markets (close in areas with job centers) that recover first, and that seems to be happening now.

The question remains… how much inventory will this induce? In addition to pent-up demand on the buyer side, there is “left over” inventory on the seller side… sellers who got discouraged trying to sell their home last year, and will try again once the market shows signs of life. There are also sellers waiting in the wings who delayed putting their home on the market last year because of market conditions, but will likely jump in if they see conditions improving. Is the market hot enough to absorb a spike in inventory? We will have to wait and see.