Pleasanton Market Update - Sales Up, Inventory Edges Down

Despite the doom and gloom from Wall Street and the national real estate and mortgage markets that has permeated our collective psyche, the Pleasanton real estate market continues to be steady in the face of adversity. September saw pending sales increase to the second highest level of the year, with 55 pending sales, up from 50 in August. This is second only to April, which saw 67 pending sales. Inventory edged lower as well, with 236 single family homes on the market at the end of September, down from 264 at the end of August. (click on graph to enlarge)

So what accounts for this strong showing in the face of negative news? In my opinion, it is several factors

* Pleasanton remains a highly desirable community, with excellent schools, good commute access, strong job base, outstanding quality of life, clean, well manicured neighborhoods, and a charming downtown.

* We are still seeing a fairly consistent migration from the South Bay/Fremont to this area. Buyers are looking for good schools and safe neighborhoods

* The market here is more stable than many others in the outlying areas. Pleasanton has yet to be inundated with large increases in distressed properties for sale.

* Home values are attractive. While the market is certainly more stable than other areas of the East Bay, prices here have definitely dropped over the course of the last 2 years, and this creates opportunities for buyers to get homes in prime neighborhoods at great prices.

Inventory is down because some sellers have decided they don’t want to participate in the current market environment, where demanding buyers are extremely cautious and looking for prices that reflect the current reality. There is no getting around it… buyers demand value today, or they are just as happy to wait. But when a home is a great value, there is interest from buyers. And the more motivated sellers are willing to swallow hard and sell their homes at a price that is attractive to buyers.

The under $1 million market saw a sharp decrease in inventory, with 121 single family homes on the market at the end of September, down from 148 at the end of August. Pending sales were about the same, with 37 pending sales in September, down from 38 in August. (click on graph to enlarge)

The $1 million to $2 million market saw an increase in pending sales, with 15 pending sales in September, up from 9 pending sales in August. Inventory edged down to 78 single family homes on the market at the end of September, as compared with 83 in at the end of August. (click on graph to enlarge)

In the luxury home segment, inventory edged up, with 37 homes on the market at the end of September, as opposed to 33 at the end of August. Pending sales were basically flat, with 3 pending sales in September. (click on graph to enlarge)

Here’s hoping we can see some stabilization in the financial sector soon so we can see better days ahead.