Pleasanton Market Update Feb 2010 – Inventory Up Modestly

The Pleasanton real estate market saw an increase in inventory and sales of single family homes across the board in January. The market usually picks up as we enter a new year and we’re still at historically low inventory levels, but it was nice to see the downward trend finally broken. The biggest inventory gains were seen in the $1 million - $2 million homes segment, while over 75% of pending sales were in the under $1 million market segment, further tightening that segment.

Total inventory of single family homes for sale in January increased for the first time in nine months. Homes for sale increased 13% or 12 units, from 90 in December to 102 in January. A modest increase compared to last year, when inventory increased 20% (39 units) in January. The 102 units for sale represented about two months of inventory, which is indicative of a pretty strong market. Pending sales of single family homes increased more substantially, from 35 homes in December to 49 in January, an increase of 40%. Here’s a look at the activity over the past 15 months.

All Pleasanton Single Family Homes
Inventory Vs Pending Sales Jan 2010

Single family homes priced under $1 million made up about half the inventory in Pleasanton in January, and over 75% of the pending sales. There were 49 single family homes in this segment at the end of January. That’s up only 2 units. Pending sales increased eight units to 37, a 28% increase over December. This segment of the market is very tight, with just over one month of inventory.

Pleasanton Single Family Homes Under $1 Million
Inventory Vs Pending Sales Jan 2010

The inventory of homes in the $1 million - $2 million price range rose in January to 31 units, an eight unit increase (35%) over December. That’s still a historically low number but, again, it’s nice to see the increase. There was approximately three months worth of inventory in this price range. Pending sales jumped 100%, from five in December to 10 in January, a good increase and a fairly healthy number for this segment.

Pleasanton Single Family Homes $1 Million - $2 Million
Inventory Vs Pending Sales Jan 2010

Things were a little less dynamic in the market for homes priced over $2 million. Inventory increased two units, to 22 in January, while pending sales rose only one unit, from 2 in January. That’s about 11 months of inventory, which indicates that activity is still sluggish in the luxury home segment. Single family homes in this price range accounted for about 20% of the inventory but only 4% of the sales.

Pleasanton Single Family Homes $1 Million - $2 Million
Inventory Vs Pending Sales Jan 2010

January will hopefully mark the beginning of an upward trend in inventory and sales in Pleasanton as we head into Spring. I’m hoping banks release that “shadow inventory” I keep hearing about and more homeowners come off the sidelines as the market stabilizes. There is still plenty of demand for homes in Pleasanton, especially in the lower to middle price ranges. Now we just need some supply to meet the demand.