Dennis Kneale, currently Media and Technology Director at CNBC and previously managing editor at Forbes and an editor at the Wall Street Journal, breaks down what is happening in the market “by the numbers.”

He states that the market is going through a much needed correction, recovering from inflated home prices. He notes that 95% of mortgage holders pay on time and that only 2% of households in the US are in foreclosure.

His commentary puts a fresh spin on the the media’s propensity for doom and gloom coverage of the real estate market.

Click here to watch a video of Kneale’s commentary.

Our listing at 3434 Vermont Place in Pleasanton has just been reduced to $795,00. (Previously listed at $814,00)

This is a terrific home in a great neighborhood, situated on a lot that backs to open space.

• 4 Bedrooms
• 2.5 Baths
• Most popular floor plan in development
• Well maintained by current owners
• Close to park and elementary school.

 Click here to tour this home. 

Open Sunday, 7/13 from 1pm-4pm.

A recent cover story in the Pleasanton Weekly echoed what we have been saying for some time now. Yes, the national real estate market is tough right now, but Pleasanton is faring much better than many communities across the country-and even better than some communities in our backyard. 

The foreclosure news that hit the media today indicated that Stockton, Merced, and Modesto were among the cities with the highest foreclosure rates in the country. Pleasanton, by contrast, has been well insulated from the foreclosure issues that are plaguing other communities. At the end of June, Pleasanton had only11 foreclosure sales. Compare this to Antioch and Brentwood with over 500 foreclosures.

Why is Pleasanton doing better than most? Carol Rodini, a respected Bay Area real estate expert and consultant had this to say:

“When you look at Pleasanton as a whole, you find real estate in this city protected. First of all, you are fully developed out here. Basically, you have a wonderful infrastructure. You have a diverse selection of apartments, condominiums, homes, and various neighborhoods. You have a great school district. Even if you are commuting, you are still close enough to San Francisco and Silicon Valley to make living here do-able.

When I looked at some of the prices that you have here and what’s really happened, I found that as recently as 1996, you could have bought here for $296,000. By 2004, you were already up to $722,500. You peaked at $831,750. Now you have gone down a little , but if you look at the current market, it’s basically at about $780,000.

When you think that there are places that have decreased in value 30, 40, and 50 percent and that you’ve had a decline of about 13 percent, which is normal in a correcting market such as the one we’re in, this is incredible. ”

Of course, this doesn’t mean that there aren’t challenges in our local market. But overall, Pleasanton is attracting buyers because it is such a desirable place to live. With interest rates STILL at historic lows and financing available to those with good credit, buyers will continued to be attracted to all Pleasanton has to offer.

Click here to read the entire Pleasanton Weekly article.

Mid Year Market Update

The first six months of 2008showed mixed results for our Pleasanton Real Estate Market.  Overall the market appears to be searching for some semblance of normality.  Let’s call it the new normal.

SINGLE FAMILY HOMES:  Inventory levels are up for single family homes from this time last year.  There are currently 253 single family homes available for sale. That is up 21% (209) from one year ago. The year started out with 135 and has nearly doubled since then.   For the moment inventory levels are actually pulling back slightly.  The month of June started out with 262 homes. 

Sales activity for June 2008 vs June 2007

 Sales activity for Jan-June 2008 vs. Jan-June 2007 

As you can see, the number of sales is down dramatically from the same period of one year ago.  This is at least partly due to the difficulty associated with obtaining financing.

TOWNHOMES & CONDOMINIUMS:  Inventory levels are fairly flat from one year ago.  There are currently 69 townhomes and condominiums available for sale.  This is down slightly from one year ago (72). 

At the current pace of sales Pleasanton presently has an unsold inventory index of 8 months. This is a number used to measure the strength of sales activity in a market place.  The bright spot for this category is that inventory levels have remained very flat since one year ago.  This is very significant since other communities are seeing a dramatic increase in inventory.

SUMMARY

Although the number of sales compared to the same period a year ago is down significantly, the pace of current sales activity is fairly stable relative to inventory levels.  At the current rate of sales, June should end with approximately 50 sales for single family homes. 

 At the current level of inventory of 250, that represents about five months worth of inventory.   The next two months should give us an idea of what direction the market is headed.  There are many potential buyers going through open houses and many of my Realtor colleagues are busy writing offers.  Financing restrictions are loosening up a bit although rates have bumped up recently.

Our listing at 1373 Pine Street in Livermore has just been reduced in price. Now offered at $450,000.

• Single Story Cottage Style Home 
• 3 Bedrooms
• 2 Baths
• Kitchen/Family Room
• Great Floor Plan
• Large Lot with extended driveway.

Contact us to set up a showing of this property.