As the COVID-19 crisis has impacted the Tri-Valley, real estate professionals have had to change operations in the midst of a shifting market.
"Real estate professionals throughout the Tri-Valley are having to reinvent how they do business," said David Stark, the Public Affairs Director of the Bay East Association of Realtors. "They've had to learn very quickly how to work with restrictions of the shelter-in-place. They've had to be very nimble in terms of sharing with their clients the properties that are available, allowing their clients to safely access properties and just managing the expectations of buyers and sellers."
Specifically in the Tri-Valley, the market has taken a hit due to the shelter-in-place. In Pleasanton, home sales were 62% lower in May compared to the same month in 2019, according to data provided by Bay East.
Home sales were down in every Tri-Valley community, year-over-year; the decreases ranged between 54% to 73%.
The median sale price in Pleasanton dropped by $66,000 year-over-year, a 5% decrease. Currently the median price for a home in Pleasanton is $1,213,000. Alongside that, there are currently fewer homes on the market in the Tri-Valley altogether.
Stark described how overall there has been a high fluctuation in market conditions since the COVID-19 outbreak. Still, individuals remain interested in buying housing, even in the midst of the pandemic.
"What we're seeing in Pleasanton is similar to other communities that have an extremely high quality in life," he said. "That is while the supply of particularly single-family detached homes has been decreasing throughout this year, at the same time there is a significant interest in home-ownership that has kept sale prices at historically high levels."
Interest rates have lowered, too, making buying more attractive right now. One positive for Tri-Valley sellers that Bay East's May 2020 market data noted was homes were on the open market for fewer days than in May 2019 in San Ramon, Danville and Pleasanton.
"Once it was deemed that real estate was an essential business, we started to see some properties, especially owner-occupied properties, come off the market because the sellers wanted to pull back to wait and see what was going to happen," said Tina Hand, the president of the Bay East. "We are seeing showings out there, the interest rates are phenomenal, so the buyers can grab a whole lot more house with lower interest rates."
According to Hand, the spring market was when more properties were supposed to be placed on the market. But, because of the COVID-19 crisis, these listings will now go on he market in the summer.
Hand said that, while price appreciation will not be in the double digits this year, and total sales will be down compared to 2019, "It has started to pick up," she said. "I predict that it will be a good market."