Danville Market Update August 2011 – High End Leads Market Lower

The Danville real estate market saw pending sales fall for the third consecutive month and inventory fall for the second consecutive month, led by declines in both numbers for homes priced over $1 million.  The decline in pending sales of homes in this segment was particularly sharp, at 56% from June to August.  Homes priced under $1 million, which made up 66% of San Ramon’s inventory in August, showed strength with slightly higher sales and stable inventory.

Overall, there were 185 single family detached homes listed for sale in San Ramon at the end of August, compared to 190 at the end of July and 200 at the end of June.  That’s a decrease of 15 homes available during the period, a fall of 7.5%.  Pending sales fell from 61 in June to 56 in July and 54 in August, a drop of seven homes or 12% from June to August.  Inventory relative to pending sales was stable at 3.4 months at the end of August, compared to 3.4 months at the end of July and 3.3 months at the end of June.

All  Danville Single Family Homes
Inventory Vs Pending Sales August 2011

Homes priced under $1 million accounted for 66% of San Ramon’s inventory at the end of August, compared to 64% in July and 63% in June.  Pending sales in this segment made up 85% of San Ramon’s sales in August, compared to 80% in July and 70% in June.  The sharp increase in the mix of pending sales in this price range was directly related to the decrease in pending sales in homes priced over $1 million.  There were 46 pending sales in this segment in August, compared to 45 in July and 43 in June.  That is actually a 7% increase over the period.  Inventory was stable, with 126 homes available in June, 121 in July and 123 in August.  Inventory relative to pending sales stood at 2.7 months at the end of August, compared to 2.7 months for July and 2.9 months for June.

Danville Single Family Homes Under $1 Million
Inventory Vs Pending Sales August 2011

Homes priced over $1 million aw a sharp drop in pending sales and a less severe decline in inventory.  Pending sales fell from 18 in June to 11 in July and 8 in August, a 56% decline over the two months.  Inventory fell by 16% over the same period, from 74 at the end of June to 69 at the end of July and 62 at the end of August.  The result was an decrease of the mix of these homes in San Ramon and an increase in inventory relative to pending sales.  This segment accounted for 15% of San Ramon’s pending sales in August and 34% of inventory, compared to 30% and 37%, respectively for June.  Inventory relative to pending sales increased from 4.1 months at the end of June to 6.3 months at the end of July and 7.8 months at the end of August.

Danville Single Family Homes Over $1 Million
Inventory Vs Pending Sales August 2011

Homes priced over $1 million dragged the numbers down for San Ramon in July and August but the market for homes priced under $1 million, which make up two thirds of San Ramon’s inventory remained strong.