News

Pleasanton Real Estate Preview: Home buying and selling will change during 2019

Buyers may have more time to shop; sellers may need to be more patient

Following years of stable market conditions, changes are coming for home buyers and sellers.

Historically high sales prices typically attract the most attention in stories about real estate. Meanwhile, in Pleasanton, the number of homes for sale and the actual number of homes sold gets less notice because, during the last five years, those amounts haven't changed much.

Even with astronomical sales prices, many current Pleasanton homeowners have not put their homes on the market. And most of the new residential construction in Pleasanton has been either apartments, condominiums or townhomes. These factors contributed to the limited, but stable, supply of single-family detached homes.

Meanwhile, job growth throughout the Bay Area coupled with low mortgage interest rates has kept demand for home ownership high. This demand showed up in the median sales price for single-family homes in Pleasanton during 2018 topping more than $1.2 million. Even at these prices, home sales have remained steady during the last five years.

Questions about the sustainability of these conditions were answered in surprising ways during 2018. During the second half of the year, prices did drop on a month-to-month basis from a high of $1.32 million during May to $1.24 million during September. However, the 2018 median of $1.2 million represented a 10% increase from the 2017 median sales price.

"If you're looking in Pleasanton and if you're a savvy buyer, you're going to be starting in the three-quarter of a million-dollar range and that's going to be a bargain for Pleasanton," said Nancie Allen, 2019 president of the Bay East Association of Realtors.

Homeowners responded to these record-breaking prices by putting more homes on the market. Inventory increased from 774 homes for sale during 2017 to 873 in 2018.

"We're definitely seeing an increase in inventory and homes are staying on the market longer," Allen said. "For buyers, you're going to see more options available to you and less competition for those options."

Buyers may have more time to shop, and sellers may need to be more patient during 2019. A home was on the market during the last half of 2018 an average of 32 days compared with 30 days during the same period in 2017.

"For sellers in Pleasanton, even though it's such a desirable city to live in, we're seeing much longer average days on market," Allen said. "Longer days on market mean a healthier, stable market for buyers and sellers."

Asked about the impact new home construction is having on the Pleasanton real estate market, Allen said, "People do love new construction, and Pleasanton is the kind of town where the new construction is going to draw certain buyers. But the tried-and-true older homes in Pleasanton are still going to be a huge draw. You're going to see two different kinds of buyers -- the kind that like the new and the kind that still love older homes."

While the Tri-Valley and Pleasanton continue to change, Allen said home ownership remains desirable: "Buyers love the small-town feel of a place that has a ton of businesses, easy transportation with BART in and out, and a good school system. And that's why people love Pleasanton."

Editor's note: David Stark is the public affairs director for the Bay East Association of Realtors, based in Pleasanton.

What is democracy worth to you?
Support local journalism.

Comments

4 people like this
Posted by Tom & Ken
a resident of Country Fair
on Jan 28, 2019 at 1:24 pm

I've read and re-read this article several time an have come to the conclusion that Nancie Allen is very much correct in stating that we are going to see two types o buyers....one liking the new and those liking the older homes, however why dose that mean that we have to change our quaint little downtown into a three or four story apartment building or condo City
and destroy the beauty of Downtown Pleasanton?

Yes, progress must go on , but it's the high paying buyer who wants to make the big bucks by making the purchase, so the renter has to pay a much higher rental fee or the buyer makes a bigger profit by selling to a higher
bidder . Look at how many empty buildings we have at present. Why ? The rents are sky high.

We were at the Produce Market this last Saturday...hardly many people going by...reason is that prices are too high for what is being sold. Better to sell at a cheaper prices than having to pack up crates with goods
and return back to farms and not selling what you brought to sell. You can only do so much with fruits, vegetables or frozen items. What a waste of products only because you want to make more money and a bigger profit. The same goes for Real Estate buyers....and who suffers most ?? We the People who owe support to our local shops and sellers .We owe more support to our quaint little town and have pride in our town as well. Let's not fail our town now.


18 people like this
Posted by Bill
a resident of Pleasanton Heights
on Jan 28, 2019 at 2:30 pm

Hey Tom and Ken,

You want lower prices for real estate, but you also want developers to stop developing higher density real estate? Let me know how you propose to accomplish that.

Oh, and the farmers market is packed each weekend I go. Maybe I'm going at the wrong time.

I remember Pleasanton in 1980. And I see it today. It's totally different, but I still love it. The food is certainly better now.


17 people like this
Posted by Tom & Ken
a resident of Country Fair
on Jan 28, 2019 at 6:31 pm

Say There Bill from Pleasanton Heights....

Why do you alwsys want to start an argument...I'm only expressing my little opinion on keeping Pleasanton as a quaint downtown area. Do you want to the same sight that you see when you drive out from Lowe's and all you see up on the hills are houses packed like sardine cans.....can you see
this happening here? Change is good, but too much change can ruin your town. That's all I'm trying to convey. Peace..Brother !


Sorry, but further commenting on this topic has been closed.

All your news. All in one place. Every day.

Differentiating Grief from Clinical Depression
By Chandrama Anderson | 0 comments | 1,257 views

Jammed BART trains demand innovative thinking moving forward
By pleasantonweekly.com | 9 comments | 969 views

After falling at airport, Chris Miller finds stepping back from civic duties a tough start
By Jeb Bing | 0 comments | 74 views