Pleasanton Market Update August 2011 – Sales Up, Inventory Down

Pending sales of single family detached homes increased again in Pleasanton during August, posting the second highest number (74) for the year, behind only May’s 78.  Homes priced below $1 million accounted for the entire increase.  Inventory fell during the month  of August after five consecutive monthly increases.  This in the face of a wobbly stock market and continued sour news on the economy.  The good news is the continued low interest rates, which continue to hover at record low levels.  This no doubt is driving much of the activity, and contributing to the overall feeling that despite the economy it is an excellent time to buy a home.

Overall, inventory fell by 22 homes from 224 at the end of July to 202 at the end of August, a drop of nearly 10%.  Pending sales increased nearly 16% to 74 during August, from 64 in July.  As a result, there was only 2.7 months of inventory in Pleasanton relative to pending sales during August, down from 3.5 months in July.  That’s the tightest the Pleasanton market has been since May of last year.

Pleasanton Single Family Homes
Inventory Vs Pending Sales August 2011

Homes priced under $1 million saw pending sales climb about 20% during August, from 49 in July to 59 in August.  Inventory meanwhile, fell nearly 13%, from 157 at the end of July to 137 at the end of August.  Inventory relative to pending sales fell from 3.2 months in July to 2.3 months in August.  This segment accounted for 68% of Pleasanton’s pending sales and 80% of its inventory in August.

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

There was little activity in the market for homes priced between $1 million and $2 million.  There were 14 pending sales during August, off one from 15 in July.  There were 48 homes available in this segment at the end of August, one higher than July.  Inventory relative to pending sales stood at 3.4 months at the end of August, compared to 3.1 months at the end of July.  This price range accounted for 24% of pending sales and 19% of inventory in Pleasanton for August.

Pleasanton Single Family Homes $1 Million - $2 Million
Inventory Vs Pending Sales August 2011

The market for homes priced over $2 million was also pretty quiet.  There was only one pending sale, versus none in July.  There were 17 homes on the market in this segment at the end of August, down three from 20 at the end of July.  8% of Pleasanton’s inventory was in this market segment.

Pleasanton Single Family Homes Over $2 Million
Inventory Vs Pending Sales August 2011

With sales increasing and inventory falling, the Pleasanton real estate market got tighter in August.  However, there is still plenty of inventory out there and demand remains strong.  It will be interesting to see how things play out as we enter the Fall months.