Pleasanton Real Estate Market Update - May 2023 (April data)

The Pleasanton real estate market continued to show strength in April.  Exceedingly low inventory and a rebound in demand has led to a strong seller’s market in most price segments, with multiple offers occurring on the better listings.  The lack of inventory is definitely affecting sales activity.  There were only 37 single family homes for sale at the end of April, an extremely low level.  In fact, it is 36% below the available inventory at the end of April 2022, which was also an inventory restricted market.  At this point it is safe to say that sales activity (pending & closed sales) would be much higher if there was more inventory.  But the normal Spring surge in inventory has not yet emerged.

Closed sales in April were up 3.2% over March but down 37% from April of last year. Pending sales were up 16% from March, but down 43% from April of 2022., and the median sold price was up 24%.  Median days on Market declined to 7 days.  The median sold price dipped 5.7% from March, but the median price per sq ft was up 12% from March (but down 16% from April last year). 

The average sales price to list price ratio jumped to 104% compared to 100% in March, a further indication of multiple offers on many listings.  All of this is good news to sellers who have been battered by the erosion of value over the last 8 months. 

Interest rates remain relatively stable for the moment, with 30 year fixed mortgage rates averaging around 6.3%.  All eyes are on inflation, which has the most direct impact on mortgage rates.  IF we see inflation ease we will see long term mortgage rates ease as well.

For sellers, the outlook has definitely improved. Cosmetic fixes before you go on the market are important to make sure your home appeals to today’s buyer. It is also wise to get inspections, and if possible complete the recommended repairs. The more potential objections you can eliminate the more attractive your home will be to buyers

For buyers, competition has heated up for the best homes on the market, so be prepared to be aggressive in your offers.  You are still buying at a discount from the peak of the market last Spring, so in a sense all of the homes available are on sale.  And remember the old saying “You marry the house, but date the rate”.  You can always refi down the road if/when rates come down, or even consider adjustable rate loans that are fixed for 5-10 years to buy time. 

Now more than ever it is crucial to get the advice of a professional REALTOR.  If you would like to discuss the current market and how it impacts you, give me a call today at (925) 621-0680.  As a broker with over 30 years’ experience, I am here to help.