Danville Market Update August 2010 – Market Softens

The Danville real estate market softened over the past two months, with inventory levels rising and pending sales decreasing. Homes priced under $1 million have been accounting for an increasing share of inventory and pending sales over the past several months. In April, inventory was evenly split between homes priced over and under $1 million. At the end of August, however, homes priced under $1 million made up 59% of inventory. Meanwhile, pending sales of homes priced over $1 million have fallen significantly since March of this year (7 in August versus 20 in March).

Overall, there were 184 single family homes on the market at the end of August, compared to 181 at the end of July and 159 at the end of June. That is a 15% increase since June. Pending sales fell to 44 at the end of August, after increasing in July to 55, from June’s 47. August’s 44 pending sales is the lowest level in San Ramon since January of this year. Inventory relative to pending sales increased to 4.2 months at the end of August form 3.3 months at the end of July and 3.4 months at the end of June.

All Danville Single Family Homes
Inventory Vs Pending Sales Aug 2010

The inventory of single family homes priced under $1 million stood at 108 at the end of August, down from 108 at the end of July but up 18 units from June’s 90, a 20% increase. Pending sales in this segment fell to 37 at the end of August from 46 at the end of July. August’s pending sales were still higher than June’s 34.

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

The market for homes priced over $1 million is typically more volatile but the trend over the past several months is pretty clear. Pending sales have been declining while inventory levels haven’t changed much. There were 76 single family homes on the market in this segment at the end of August, compared to 72 at the end of July, 69 at the end of June and 74 at the end of May. Pending sales fell sharply during the same time period, from 13 at the end of June, to 9 at the end of July and 7 at the end of August. That is a 46% decrease since June. Inventory relative to pending sales jumped 100% from June to August. There were nearly 11 months of inventory in this price range at the end of August, compared to 8 months at the end of July and 5 months at the end of June.

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

The high end (homes priced over $1 million) softened significantly over the past several months. While demand was stronger for homes priced under $1 million, the market for these homes also softened somewhat. Overall, the market is slower but still healthy as we head into fall.