Loading ...The Pleasanton CA real estate market continued on a slow and steady trend in January, as rainy weather and the dark clouds of bad news on real estate and the economy dampened most buyer’s moods. Fears of a recession and dismal national real estate news were instrumental in prompting the Federal Reserve to again lower short term interest rates by 3/4%, which is certainly good news for mortgage rates in the short term. And the impending stimulus plan being proposed in congress, but not yet signed into law, brought even more hope that the bottom of the cycle is near. Perhaps most significantly, the much discussed increase in the FNMA loan limits, which are currently stuck at a laughable $417,000, seemed to pick up steam, with speculation that an increase into the low $700,000’s for the Bay Area was being considered. This figure, which is based on 125% of the area’s median home price, might be the spark everyone is hoping for to signal the end of the home price declines. As the Senate and House reconcile their stimulus bills, it is not yet certain that an increase in the Federal conforming loan limits is imminent. But most industry insiders are hopeful that the increase in the loan limits will become a reality. All of this is prompting cautious optimism that we will see some stabilization in the Pleasanton area real estate market as we go into the Spring market.
Overall in January, pending sales remained at a low level, ending the month of January at 25 pending single family home sales, up from just 24 in December. The inventory at the end of January rose to 159 single family homes on the market, up from 136 at the end of December. This is still a low inventory figure, although it is expected to rise as we enter the Spring. (click on graph to enlarge).
In the under $1 Million market segment in Pleasanton, pending sales declined in January, ending the month with 14 pending sales, as compared to 17 in Decembr. Inventory rose, with 81 single family homes on the market at the end of January, as compared with 69 at the end of December. (click on graph to enlarge).
The $1 million to $2 million market segment saw an increase in pending sales, with 10 pending sales in January, up from 5 pending sales in December. Available inventory of homes in this bracket rose from 43 available homes at the end of December to 50 available homes at he end of January. (click on graph to enlarge).
In the $2 million plus market segment, there were no pending sales in January, a decrease from 1 pending sale in December, and 9 and 4 pending sales in October and November respectively. Inventory rose slightly, with 28 homes on the market at the end of January, up from 26 at the end of December. (click on graph to enlarge).
Look for both inventory and sales activity to pick up as we get into March and April. Lower interest rates, along with the possibility of the increase in FNMA loan limits, seem to be prompting more buyers to start looking. Most agents are reporting an increase in traffic at Open Houses, and there seems to be more inquiries from potential buyers. While this is no guarantee that sales will increase, it is certainly a good sign. Another positive sign is the emergence of “vulture funds”, where investors seek out bargains on foreclosed properties. This is a signal that at least some professional investors feel we are nearing the bottom of this down market.
Stay tuned… the next couple months promise to be interesting. And yes, there are some excellent purchase opportunities in the market.
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Pleasanton Market Update - Slow and Steady (Again)