The Pleasanton market continued to show strong sales activity in May, especially on the lower end of the market. There were 71 pending sales of single family homes in May, up from a robust 63 in April. Compared to 19 pending sales in November, things are definitely on an upswing in terms of activity. In terms of inventory, there were 223 available single family homes at the end of May, down from 237 at the end of April. This also indicates continued strength in the market, as inventory should be starting to peak as we enter the summer.
In the under $1 million market, sales continue their upward trend, with 71 pending sales of single family homes in May, up from 63 in April and 45 in March. Low rates, a first time buyer tax credit, the increase in conforming loan limits, and renewed optimism seemed to have ignited activity on the low end. Many of the lower priced homes are seeing multiple offers, especially homes that are newer. Inventory dropped in this price range, with 108 single family homes on the market at the end of May, down from 118 at the end of April. So… less inventory and more sales means a stronger market. Indeed, there is under a 2 month supply of homes in this price bracket. Things are looking good.
In the $1 million to $2 million market segment, sales were up slightly and inventory declined. There were 72 homes on the market at the end of May in this price bracket, down from 81 at the end of April. Activity was steady, with 11 pending sales in May. There is a 6 1/2 month supply of homes in this price bracket. This price range is not nearly as hot as the lower price ranges, and buyers are much more value conscious in this price range.
In the luxury home market over $2 million, activity was slow but steady, with 2 pending sales in the month of May. Inventory in this bracket increased to 43 available homes at the end of May, up from 38 at the end of April. This still a sluggish market, with downward pressure and patient buyers who are willing to wait for the right house. Right now, there is over a 20 month supply of homes on the market in this price range.
Average days on market in Pleasanton has dropped, reflecting the increase in activity. It peaked at approx 135 in early March, and has declined to around 122.
A look at the median price per sq ft for Pleasanton shows continued softness in prices overall (orange line in the following graph). However, when one looks at the low end of the price spectrum (represented by the black line in the following graph) you can see that the prices are leveling off, which is good news. In fact, it is perhaps an early sign that the market is stabilizing.
With the continued improvement in the equity markets and renewed optimism on the economy, we could be in for an active summer. Here’s hoping…