5 Things We Know about the Pleasanton Real Estate Market

The Pleasanton CA real estate market has seen quite a year. We have seen the market go from a deep slumber in January to a nice run beginning in April, to down right hot in some neighborhoods, mostly in the lower price ranges. Here are 5 things we know about the Pleasanton housing market right now:

1. Inventory is low, and likely to stay that way. Inventory is at a very low level, with around 150 homes on the market. Most of these homes (well over half) are priced over $1 million. Many sellers have not been willing to sell at the current price levels, so they opt to postpone their move or rent their home out instead.

2. No new construction on the horizon. Pleasanton does not have a large inventory of developable land, so don’t expect to see an ample supply of new homes any time soon. And the mood of the city has been mostly “no growth” for the past several years. As a result, the Pleasanton housing stock is older than what you find in Dublin and San Ramon. In fact, the median age for closed sales of single family homes in Pleasanton in September was 24 years, compared to 17 for San Ramon and 9 for Dublin.

3. Pleasanton has fewer foreclosures compared to other Tri-Valley cities. It’s not because Pleasanton residents are smarter, or more principled (although many might argue that point). It is mostly due to #2 above. Fortunately, Pleasanton does not have hundreds of homes built between 2004 and 2007 like Dublin and San Ramon. Homes of this age are almost automatically under water, and are a much greater risk of becoming a short sale or foreclosure.

4. Pleasanton is still a premium destination. Great schools, clean neighborhoods, abundant parks, great transportation, and a charming downtown. We are still seeing a steady migration from Fremont & South Bay to the Pleasanton area, where buyers are driven by quality schools and more affordable (relative to the South Bay) housing.

5. The upper price ranges are still soft. Simply put, there are more sellers than buyers, especially as you get North of $2 million. This is leading to downward pressure on prices in this range.

It will be interesting to see what develops in 2010. A spike in inventory? More foreclosures? A multiple offer seller’s market? More of the same? Stay tuned….