Pleasanton Market Update July 2012 – Inventory Hits New Seven Year Low

The inventory of single family detached homes in Pleasanton fell again in July, with only 76 homes actively listed.  We have to go back to March 2005 to find inventory this low.  Demand remained strong, evidenced by July being the fifth consecutive month with more than 70 sales pended.  There have been 386 sales pended here since February, compared to 315 for the same period last year, a 23% increase.  The inventory of homes during the most recent five months has averaged 101 homes, 48% less than the 196 averaged during the same period a year ago.    Sales of homes priced between $1 million and $2 million were particularly strong, while inventory fell the most for homes price under $1 million.

Overall, inventory fell 28% to 72 homes at the end of July, compared to 100 at the end of June.  Pended sales were fairly steady, falling only two in July to 72.  Pleasanton had only 1.0 month of inventory relative to pended sales at the end of July, compared to 1.4 months at the end of June.  Multiple offers are common on well priced homes, especially in the lower price ranges.

Pleasanton Single Family Homes
Inventory Vs Pending Sales July 2012

Low inventory levels of homes priced under $1 million are taking their toll on sales in this segment.  Pended sales of homes priced under $1 million fell 38% in July to 36, from 53 during June.  The inventory in this segment fell 17% to 50, from 60 at the end of June.  By comparison, there were 157 homes for sale in this price range during July 2011.  Only 50% of Pleasanton’s inventory was priced below $1 million at the end of July, compared to 70% a year ago.  69% of Pleasanton’s pended sales were in this price range during July, which was not changed much from 69% last year.  Less than ¾ of a month’s inventory was available at the end of July, down from about .9 months at the end of June.

Pleasanton Single Family Homes Under $1 Million
Inventory Vs Pending Sales July 2012

Homes priced between $1 million and $2 million were the strength of the market in Pleasanton during July, accounting for nearly a third of pended sales.  Pended sales jumped in July to 22, an 83% increase over June’s 12.  Inventory fell 39%, from 28 at the end of June to 17 at the end of July.  Inventory relative to pended sales fell to less than .8 months at the end of July from 2.3 months at the end of June.

Pleasanton Single Family Homes $1 Million – $2 Million
Inventory Vs Pending Sales July 2012

The market for homes priced over $2 million was pretty quite in July, with no change in inventory (19) and no pended sales.  Two sales pended in this segment during June.

Pleasanton Single Family Homes Over $2 Million
Inventory Vs Pending Sales July 2012

I don’t know how long inventory can remain this low and demand this strong without seeing upward pressure on prices.   We’ll have to wait and see if the high level of sales in the $1 million to $2 million price range in July was a temporary blip or a foreshadowing of a shift in demand to higher priced homes.  It has been a very different summer and the Fall should be just as interesting.