Market Commentary
The month of March showed a strong improvement in the number of homes that went under contract. 43 homes went under contract in March vs. 29 homes in January and 27 homes in February-nearly a 72% increase. Here is the breakdown of those sales:
|
March Sales |
March 2009 |
February 2009 |
January 2009 |
Total |
Percentage |
|
0 to $500,000 |
5 |
6 |
1 |
12 |
12% |
|
$500k to $1mil |
26 |
11 |
23 |
60 |
61% |
|
$1mil to $1.5mil |
8 |
4 |
4 |
16 |
16% |
|
$1.5mil to $2.0mil |
1 |
5 |
1 |
7 |
7% |
|
$2.0mil plus |
3 |
1 |
0 |
4 |
4% |
|
Total |
43 |
27 |
29 |
99 |
100% |
The total sales of 99 homes in the 1st quarter of 2009 represents a 71% increase over the 1st quarter of 2008 with 58 sales.
REO and Short Sale Activity
|
Pleasanton |
1st qtr sales |
REO |
Short Sale |
Total REO& SS |
Percentage |
|
0 to $500,000 |
12 |
3 |
4 |
7 |
7% |
|
$500k to $1mil |
60 |
11 |
14 |
25 |
25% |
|
$1mil to $1.5mil |
16 |
1 |
0 |
1 |
1% |
|
$1.5mil to $2.0mil |
7 |
1 |
2 |
3 |
3% |
|
$2.0mil plus |
4 |
0 |
0 |
0 |
0% |
|
Total |
99 |
16 |
20 |
36 |
36% |
Of the 99 home sales in the 1st quarter of 2009 over one third include distress sales in the form of REO properties or short sale properties. REO properties are those homes that have gone through the foreclosure process and are now being sold by the bank. Short sale properties are those properties where the owners are attempting to work with the bank to sell the property for less than the amount owed in order to avoid foreclosure.
Of the 58 properties that sold in the 1st quarter of 2008, only 6 properties were REO and 2 properties were short sales. That equates to 14% of the total. The increase represents a 250% increase from the 1st quarter of 2008 to the 1st quarter of 2009.
Homes Currently For Sale
|
Pleasanton |
Currently for Sale |
% |
REO |
Short Sale |
Total REO& SS |
Percentage |
|
0 to $500,000 |
14 |
5% |
4 |
7 |
11 |
4% |
|
$500k to $1mil |
119 |
47% |
3 |
22 |
25 |
10% |
|
$1mil to $1.5mil |
60 |
24% |
1 |
3 |
4 |
2% |
|
$1.5mil to $2.0mil |
26 |
10% |
1 |
1 |
2 |
1% |
|
$2.0mil plus |
36 |
14% |
0 |
0 |
0 |
|
|
Total |
255 |
100% |
9 |
33 |
42 |
16% |
Within the group of homes currently for sale, the percentage of distress sales is only 16%. That is a dramatic improvement over the 36% from the “pending” sales group above. It’s unlikely that REO and short sales are done but at least for now the improvement will help to stabilize our market.
