Pleasanton Market Update June 2010 – A Bit Cooler

Last month in this space I wondered if May’s data represented a downward turning point in the Pleasanton real estate market, or if the market was just pausing before climbing again into summer. It appears we have our answer as sales fell and inventory increased across the board in June. It’s clear that the end of the federal homebuyer tax credit has had a dampening effect on the market. Of course, sales also fell last June before rising again in July so there is still hope that the summer can end on a strong note. And although overall sales were down, they are a little higher than they were at this time last year. Also, given how tight the inventory was in Pleasanton, there is some room for some additional inventory.

Overall, pending single family home sales declined to 63 for June, from 79 in May, a 20% decrease. Inventory meanwhile spiked nearly 30% to 202 at the end of June, up from 156 at the end of May. Inventory relative to pending sales increased to 3.2 months in June, from less than two months in May. May’s relative inventory was the lowest level we had seen since 2005, so the market can handle the additional slack if it doesn’t increase a great deal from here.

All Pleasanton Single Family Homes
Inventory Vs Pending Sales June 2010

The market for single family homes under $1 million saw the largest increase in inventory, but also the smallest decline in sales. Inventory increased by 33 homes, or 39% in June. June’s 117 homes for sale represented the largest level of inventory in this segment since April of last year. Pending sales were relatively flat, declining by only two, from 51 in May to 49 in April. Inventory relative to pending sales, therefore, increased from a tight 1.6 months in May to 2.4 months in June. The under $1 million market segment accounted for 78% of pending sales and 58% of inventory.

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

The $1 million to $2 million market segment continued its erratic up/down trend in June. Pending sales fell by nearly half, from 24 single family homes in May to 13 in June. Inventory increased nearly 25% to 62 homes at month-end June from 49 at month-end May. Accordingly, inventory relative to pending sales increased to 4.8 months in June, from less than two months in May. This market segment accounted for 31% of inventory and 21% of pending sales.

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

Not much changed in the luxury end of the market (homes priced over $2 million). Inventory was unchanged at 23, while pending sales fell from 4 in May to 1 in June. The luxury market in Pleasanton accounted for 11% of the inventory but less than 1% of pending sales.

Pleasanton Single Family Homes Over $2 Million
Inventory Vs Pending Sales June 2010

The market in Pleasanton remains strong, although not quite as strong as it was in May. Inventory levels increased, which could be a good thing, as demand has been good for most of this year. Just how much of an impact the end of the federal tax credit for home buyers will have remains to be seen.