Danville Market Update for February 2010 – Getting Tighter

The real estate market appears to have turned the corner over the past two months. Inventory and pending sales of single family homes both increased in each of the past two months. Inventory is still low but at least it’s headed in the right direction. Pending sales increased faster than inventory, resulting in a tighter market. There was 2 months of inventory available at the end of February, down from 3.23 months at the end of December. Inventory was pretty evenly split between homes priced under $1 million (54% at the end of February) and homes priced over $1 million (47%). However, 79% of the pending sales were of home priced under $1 million.

Overall, inventory increased to 116 single family homes at the end of February, up from 113 at the end of January and 100 at the end of December. Those are modest gains off December’s low. Demand picked up, though, with pending sales showing a 36% increase in February to 57. January’s pending sales were 42, up 35% from December’s 31.

All Danville Single Family Homes
Inventory Vs Pending Sales Feb 2010

The market for single family homes priced under $1 million got significantly tighter over the past two months. At the end of February, there was 1.4 months of inventory in this price range, down from 2.25 months in December. The absolute level of inventory increased modestly to 61 at the end of February, from January’s 60 and December’s 54. Pending sales, meanwhile, nearly doubled from December’s 24. There were 45 pending sales at the end of February and 34 at the end of January.

Danville Single Family Homes Under $1 Million
Inventory Vs Pending Sales Feb 2010

The market got tighter for single family homes priced over $1 million, as well. At the end of February, there was 4.6 months of inventory in this segment, down from 6.6 months at the end of December. In absolute terms, inventory in this price range increased to 55 at the end of February, up from 53 in January and 46 in December. Pending sales posted strong increases off December’s very low level of seven. January only had eight pending sales but there were 12 at the end of February.

Danville Single Family Homes Over $1 Million
Inventory Vs Pending Sales Feb 2010

Demand increased overall in Danville over the past two months and the market tightened up a bit. Single family homes priced under $1 million showed the greatest demand and that segment is significantly tighter than homes priced over $1 million. The absolute level of inventory is headed upward as we enter Spring, hopefully, a trend that will continue.