Publication Date: Friday, March 19, 2004

Buyers standing in line for Pleasanton homes

Describing it as still "a wild market out there," Pleasanton real estate professionals report that the continued tight housing market is hiking prices and inviting multiple offers that are often $30,000 to $50,000 above advertised listings.

They cite figures showing that there were 93 homes for sale in the city on March 12, six more than at the end of February, but still well below the 200 or more homes on the market a year ago.

"But out of those 93, many are townhomes or $1 million-plus houses," said Robin Dixon, Pleasanton manager of Intero Real Estate Services. "It's the house in the $500,000 and $600,000 price range that buyers want and we are seeing multiple offers for the few of these that are on the market. It's driving prices up."

At the end of February, 87 homes were listed for sale in Pleasanton. Of those, 64 had come on the market since January 1, while 23 - mostly those over $1 million - had been for sale longer.

During the first two months of the year, homes remained on the market an average of 40 days before selling. The median price of homes sold during that period was $985,000, with the average price at $1,397,079. The highest priced home sold for $4,888,888, with the lowest sale price listed at $499,000.

The total dollar amount of Pleasanton homes sold in the first two months was $121.5 million.

In this same two-month period, 42 homes were listed at asking prices of $1 million or more, with that price group averaging 67 days on the market.

In homes in the high-demand price range, only one was listed during that period in the $450,000 to $499,000 price category. It sold in four days. Eleven were listed in each of two pricier categories, ranging from $500,000 to $599,000 and from $600,000 to $699,000. All 22 sold in an average of five days on the market.

Although the number of homes on the market continues to hover near historic lows, the number of agents remains high, with 524 brokers who are home-based in Pleasanton. They are canvassing neighborhoods in search of potential sellers, especially this month when families who are planning to move start listing their homes so that the deals close at the end of the school year.

Also, with interest rates still low and buyers searching, those who are considering moving up to a higher priced, larger home see this as an opportune time to sell. For others, whose children are grown, the tight market means that they can close a sale quickly and move on to a different, retirement-focused community, cashing in on the hundreds of thousands of dollars in difference between what they paid years ago and what a sale would bring today.

"I know that many think spring is the perfect time to show their house, when the flowers are in bloom and the front yard trees have leaves," Dixon said. "That's probably true, but it's the seller who is on the market today who is really going to capitalize on this market."

Ed Kinney, a Realtor with Hometown GMAC Real Estate, said the market today is driven both by those who think this may be the best time to sell and those outside of Pleasanton who want to move here for the schools and community. The high achievement test scores announced last week for Pleasanton schools, coupled with financial difficulties in nearby cities, including school closings, are pushing more families to look for homes in Pleasanton. Interest rates, which have recently dropped back down to near-record lows, are enabling many to finance mortgages for the higher priced homes here, even though few are available.

With so many in line to buy the same house, Realtors also are faced with emotional problems when potential buyers learn that their offer, although well above the seller's asking price, lost out to someone else whose offer was even higher.

"We're seeing offers where the buyer will pay for many of the fees and expenses usually handled by the seller," Dixon said. "These might include home warranties, title transfer fees and even taxes. I've seen these special terms make a difference in which offer is accepted."

Still, not all sellers look for just the highest price. Having raised their own children in the home where they've lived for 20 or 30 years, Kinney finds that some pick buyers who they think will care for the home and appreciate its characteristics like they did, and sell to them.

Recognizing this, some real estate professionals now prepare letters of introduction about their clients, hoping that sellers will weigh those as well as the dollar offers in making their sales decision.

"For a couple that has looked long and hard before coming across just the right house for them in Pleasanton, it an be a very emotional disappointment when they're out bid and have to start all over," Kinney said.