Pleasanton Real Estate Market Update March 2024

The real estate market in Pleasanton is surging.  Buyer demand is strong despite the general economic uncertainty, inflation concerns, and geo-political unrest.  Inventory is still constrained in historic terms, but more homes are starting to hit the market.  All in all, the market seems poised for a stronger 2024 after the sluggish 2022 & 2023 markets.  

So what is the data telling us in February?

Supply/Inventory:  Inventory was up in February, up 29% from January.  However it is still 21% lower than February last year.   However, we should see an uptick in homes for sale as we enter the Spring market

Demand:  Pending (under contract) homes surged in February, up 85% from January and 37% from February of 2023.   Closed sales were down 5.3% from January, and down 10% as compared to February 2023, mainly a function of constrained inventory.  But as the pending sales start to close escrow this month we will see the closed sales numbers improve

Interest Rates: Definitely the key factor in driving the market this year.  Average mortgage rates are at 6.94%, and have eased around .85% from their high in October (7.79%), but have edged up almost ½% in recent weeks.  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: As long as inflation remains stubborn and the economy is showing strong growth interest rates are unlikely to decline, and could even rise more.  Definitely the key metric to track for the housing market this year