This is your luxury market update for Pleasanton for August of 2019 from Doug Buenz and the 680 Doug Buenz Group at Compass. Taking a look at the Pleasanton Luxury Real Estate Market, in short, inventory is high but flat, pending sales are down. There are a lot of choices for the luxury buyer. There are some fast sales, and many of the other homes are sitting on the market for an extended period of time. This is not that uncommon for the luxury market. Luxury buyers are discerning. The home has to check many, if not all, of the boxes that buyers are looking for. And if not, buyers generally will wait.
Taking a deeper dive into some of the metrics here is what we are seeing:
Inventory is flat. We are defining the luxury market as homes valued over $2 million. There were 34 homes available for sale in Pleasanton over $2 million at the end of July. That is flat. It was 34 homes for sale at the end of June. There were 21 homes for sale over $2 million a year ago. So inventory is higher than it was a year ago.
Pending Sales are down. There were 4 pending sales in July 2019. That is down from 7 in June, and there were 5 a year ago. Pending sales are within a relatively tight range of variates.
Months Supply of Inventory is up. The months supply of inventory simply tells you, if no new listings come on the market, given the current rate of sales, how long will it take for all the inventory to sell? At the end of July, that metric was 8.5. It would take 8.5 months to sell all of the existing inventory. That is up fairly significantly from 4.9 months at the end of June, and it was 4.2 months a year ago. So we are starting to see a little bit of an increase in inventory relative to pending sales.
Average Price Per Square Foot for sold properties was actually up, $529 per square foot, versus $524 in June, versus $475 a year ago. So, interestingly enough, some of the prices for some of these homes are actually higher than what we were seeing a year ago.
Average Days on Market for Sold Properties is down. We saw 25 days on the market in July 2019, versus 45 in June. In July 2019 we saw 37 average days for sold properties. Compare that to 93 average Days on Market for Active Listings. What is going on here with 25 days on the market for sold properties, 93 for active listings? The answer is simple. Some of the sellers in this price segment have been smart, and they have priced the property to make it an attractive purchase in the marketplace. And buyers recognize that. When a seller positions their property to be an attractive value, it can sell very quickly. That is what we have seen this last month. Looking at the 93 days on the market for your average luxury home, that means the listings are not a particularly good value, updates are needed, or other things do not quite connect with the buyers. Those properties are sitting on the market for a rather long period of time, 93 days on market on average.
Percent of Active Listings with Price Reductions was 21% for July 2019. That means 21% of sellers had to reduce their price. We will likely see that figure increase as the days on market elongates.
Sales Price to List Price Ratio for July was up strongly, 99%. That means, of the homes that sold in July, sellers on average got 99% of their asking price. It bears repeating, most of these homes were very good values in the marketplace. In fact, a couple sold over asking price. It is not a surprising statistic for closed sales right now. And 99% is up from 98% in June of this year, versus 97% a year ago. Good deals sell close to or over asking. Properties that are not priced attractively can take quite a while to sell.
Percent of Sold Properties Over Asking is another metric that illustrates this. Of the sales in July 2019, 50% sold over asked price in the luxury price range. Wow. Those sellers really priced their property well and got a lot of interest right out of the chute.
Percent of Sold Properties with Price Reductions, 33% of the properties that sold in July 2019 had price reductions. Some of those sellers recognized that the market was not responding and adjusted their price, and were able to get their properties sold.
That is the report for the July 2019 Pleasanton luxury market. The luxury market moves at a little slower pace than the rest of the market, and value rules the day. If you have a home in the luxury price segment and you want to sell it, price it aggressively, price it to be a value, and you will stand out in the marketplace.
If you have any comments or feedback, we would love to hear from you. If you know anyone who could benefit from this information, please do share it with them. If we can help you or anyone you know with your real estate need, call Doug Buenz with The 680 Doug Buenz Group at Compass
at 925-621-0680. For more information, current listing and market reports go to
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