Dublin Market Update - Steady as She Goes

The Dublin real estate market remained steady in November, with pending sales of single family homes matching October’s level at 23 for the month. This has been fairly consistent since August, with the exception of September, which saw a spike in pending sales to 42 for the month. Inventory declined slightly in November, with 101 single family homes on the market at the end of the month, down from 110 in October. This indicates a 4 month supply of homes in Dublin, which is a decent showing given the uncertainty in the real estate, mortgage, and financial markets. (click on graph to enlarge)

Value continues to drive activity, with buyers looking for homes that are priced to reflect the current economic environment. Indeed, we have seen continued downward pressure on prices, especially in the median home price as a larger percentage of transactions fall into the distressed sale category, including foreclosures and short sales. Because the overall price range in Dublin tends to be lower than Pleasanton, San Ramon, and Danville, the market activity has remained fairly steady in Dublin, while the other cities saw more pronounced declines in sales activity for November.

Now that it is official that we are in a recession, everyone is crossing their fingers that the recent moves by the Fed will jump start the recovery process. Look for continued downward pressure on interest rates as the Fed continues to increase liquidity and “prime the pump” in the credit markets to spur activity.