Pleasanton Market in A Minute

August 2008

The topic of short Sales and foreclosures are frequently in the headlines these days. 

Lenders started foreclosure proceedings on a record number of California homeowners last quarter, the result of declining home values and the rampant spoilage of a batch of especially risky home loans made in late 2005 and 2006, a real estate information service reported.

Mortgage servicers recorded 121,341 “notices of default” during the April-through-June period. That was up 6.6% from a revised 113,809 for this year’s first quarter, and up 124.9% from 53,943 in the second-quarter of 2007, according to DataQuick Information Systems.

Foreclosure resales have emerged as a significant market factor, accounting for 40% of all California resale activity last quarter. A year ago it was 5.4%.

Let’s take a look at the numbers in the Tri-Valley Area to see how things stack up against the California State Total of 40%. 

As you can see Pleasanton’s numbers are comparatively lower than Dublin and Livermore.  A closer look at the breakdown between Pleasanton single family homes versus townhomes and condominiums indicates that the Pleasanton single family category is holding up very well.

The less REO/Short Sale activity should mean the less downward pressure on home values.  As you can see from the table below, home values in the single family category have dropped only slightly compared to the town home/condo category.

Have we hit the bottom of the market? The small increase in defaults from the first to the second quarter may indicate that we’re nearing a plateau. We won’t know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process

A recent article in the San Francisco Chronicle noted that bank owned homes sold at cut rate prices drove the  Bay Area median sales price down by about 30%. While this is true in some communities, and specifically in Solano County which had the largest number of foreclosure sales, not all communities have been as severely impacted.

 Pleasanton real estate has been relatively insulated from a glut of foreclosure sales. Only 12% of resale activity in 2008 in Pleasanton can be attributed to foreclosure sales. Compare this to 34% and 38% of home sales respectively in Dublin and Livermore.

Unlike other communities, Pleasanton’s median home price has dropped by approximately 3.5% from $875,000 in July 2007 to $845,00 in July 2008.

Investors and first time buyers with good credit are snatching up foreclosure bargains. Some analysts see the upswing in sales, even foreclosure sales, as a positive sign leading to market stability.

Click her to read the entire article. 

Watching and following the success my nephew’s Pleasanton Little League team this summer has been really exciting. Their season culminated in a big playoff game in Southern California.

My brother Dave and I left Pleasanton last Friday at 9:30am to drive down I-5 in the hopes of getting to San Bernardino in Southern California by 4pm that afternoon.  4pm would be the start of the big semi-final game for the Pleasanton American vs. a team from Hawaii in the Western Regional World Series Championship.  Our 12 year old nephew Jake would be playing in the “BIG” game and we did not want to miss a minute of the game.  The winner of this game would go on to the championship game on Sunday which would be televised on ESPN.

Everything went smoothly until we got to the base of the Grapevine around 2:00pm.  We started encountering LA Friday afternoon traffic and started to worry we would miss some of the game.  Fate was on our side as we arrived at the stadium just 15 minutes before game time.  There was a great ceremony to start the game and for the first four innings there was no score.  There was a large contingent of Pleasanton families and fans to root for our boys but it all came apart in the 5^th inning when Hawaii scored several runs.  They had an incredible pitcher who shut our team down.  Jake my nephew got the lone base hit of the game but it was too little against the bats of a bigger and more experienced team.  Final score Hawaii 8 Pleasanton 0.  The boys were of course disappointed but found solace in the fact that no Pleasanton team had ever gone this far in the history of Pleasanton Little League.

My brother and I had dinner with our brother Ron and our nephew Jake that evening and had a great time reflecting on the tournament and Jake’s incredible success as one of their star pitchers.  The long drive home on Saturday morning provided a great opportunity to have a great life talk with my brother Dave and reflect on the importance of quality family time.

Pleasanton Market in a Minute

July 2008

How many homes are currently on the market in Pleasanton?

Inventory levels are up for single family homes from this time last year. There are currently 283 single family homes for sale in Pleasanton.  This is up 32% (214) from one year ago. Inventory levels have more than doubled compared to the beginning of 2008 which began with 135 homes for sale.

Are home sales increasing or decreasing?

Sales activity in July is on par with last month.  This month, 40 homes have been reported pending, as compared to 42 homes in June. In July 2007, 55 homes were pending. This represents a 20% decrease from this same period a year ago.

What’s happening with townhomes and condominiums?

There are currently 57 units for sale compared to 80 units at this time last year. Sales activity is comparable to last year.  There are 12 units pending this month. 11 units sold in July 2007. The median sales price for townhomes/condominiums for June 2008 was $460,00, compared to a median price of $582,500 in June 2007. This represents a 21% decrease.

What’s Roy’s perspective on the market?

Inventory levels are up and sales activity is down. However, the median sales prices for single family homes in Pleasanton is holding steady, with only a 3.5% decrease from this same period last year.  In June 2008, the median home price was $830,000. In June 2007, the median home price was $859,000. At the current selling pace, Pleasanton has 5 months of inventory on the market. The average number of days on the market for June 2008 was 60, down slightly from year to date days on market of 70. Sales Price vs. List Price for the month of June was at 95.54%. These numbers have significant relevance when compared to other local markets. Hayward, for example, had 767 homes on the market at the end of June, a seven month supply of inventory. The median home sales price for this area was at $329,900 with a year to date days on market average of 100 days. Livermore averages about 89 days on the market with an median home price of $529,000. At the end of June, there were 351 homes on the market in this area.

In real estate, it’s important to look closely at our local markets to truly gauge what is happening. Pleasanton is holding steady compared with other nearby communities that have significantly more inventory, longer days on market, and lower median home prices. 

One of the most far reaching housing laws in decades, the rescue law has two main objectives: to offer affordable government-backed mortgages to homeowners at risk of foreclosure, and to bolster mortgage giants Fannie Mae and Freddie Mac.

The plan also includes a larger role for the FHA, stronger regulations, new home buyer credits, permanent increases in loan limits, and grants to states to buy foreclosed properties.

Click here to read all the details of this legislation.