Pleasanton Real Estate Market Update - April 2024

April Pleasanton Real Estate Market Update – The Hot Streak Continues

Simply put, the real estate market in Pleasanton is HOT.  Inventory remains severely constrained, and any new listings are generally being snapped up quickly.  The Spring market is definitely in full bloom right now.

Let’s take a dive into the numbers for March:

Supply/Inventory:  We saw more homes come on the market in March, and most of them sold right away, leaving a paltry 25 single family homes on the market at the end of March.  That is 32% lower than last month, and 43% lower than March of 2023.  To say inventory is constrained would be an understatement. 

Demand: In March we again saw strong demand overall.  Thanks to more inventory hitting the market, pending sales (homes under contract) surged in March, up 63% from February and 54% from March of 2023.   Closed sales more than doubled, up 105% from February, and up 26% as compared to March 2023. It appears buyers have come to the conclusion that higher rates will be with us for the for a while, and many buyers who put off buying due to these higher rates have decided not to postpone their purchase any longer.

Prices: The median sales price for March was up 6.8% from February, coming in at $1,948,800.  Another indicator of the strength of the market is the sales price to list price ratio for March.  Overall single family homes sold for 104% of the list price, up from 102% in February.  So on average homes are selling for 4% over their asking price.  Needless to say there are lots of happy sellers in the market right now

Interest Rates: Average mortgage rates held farily steady at 6.82%, down from their high in October (7.79%).  Rates have remained relatively flat the last few weeks while the Fed holds the Federal Funds rate steady. While the prevailing wisdom from financial experts earlier this year was that the Fed would cut interest rates, that sentiment seems to have waned with renewed concerns about inflation and the surprising strength of the economy.

Economic/Other Considerations: The economy continues to show strength, as recent jobs reports showed strong growth. Inflation remains higher than the target rate of 2%, delaying the much-anticipated interest rate cut by the Federal Reserve. As long as inflation remains stubborn and