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Buyers may be willing to deal with low inventory and high prices to become homeowners in Pleasanton during 2024.
At the beginning of 2023, the median sales price for a single-family detached home in Pleasanton was $1.48 million. By March 2023, prices shot up to more than $1.8 million and then fluctuated during the spring and fall. In December, prices had dropped to $1.5 million.
Taken as a whole, the median sales price during all of 2023 was $1.72 million, which was slightly less than $1.73 million during 2022. Even with this relatively lower amount, prices during 2023 were the second highest on record. Prices are expected to remain high during 2024.
Lower mortgage interest rates may help bring homeownership into range for more buyers during 2024.
“Right now, interest rates are a little bit lower than they have been in the recent past and there’s a possibility that they could go even lower, so buyers are not scared off by sales prices in Pleasanton,” said Barbara Clemons, 2024 president of the Bay East Association of Realtors.
According to analysis by FreddieMac, interest rates during October 2023, for a 30-year “jumbo” mortgage were in the 8% range. As of mid-January 2024, rates are now closer to 6.5%.
For Pleasanton homeowners considering selling during 2024, Clemons shared that even with buyers having access to mortgages with lower rates, “sellers need to be a bit realistic about prices. They should consult with their agent to set expectations.”
Lower rates are good news for buyers who will face other challenges during 2024, including a limited supply of homes for sale.
Buyers in Pleasanton had far fewer choices during 2023 compared with 2022. On average there were 33 single-family detached homes for sale each month during 2023 versus 50 homes for sale each month during 2022.
One factor driving the lack of inventory was the significant number of homes sold during 2021. More than 860 homes sold that year, which was at least 200 more sales than during the previous years.
Buyers who purchased in Pleasanton during 2021, when mortgage interest rates were in the 3% range, or lower, will be unlikely to sell anytime soon. As a result, the trend toward fewer homes on the market may continue during 2024.
Current Pleasanton homeowners may be reluctant to sell for another compelling reason: quality of life.
“It’s a very nice place to live and so I don’t see residents wanting to leave unless they have to,” Clemons said. “Unless some life change or something like that or if they want to cash out here and go retire somewhere else.”
Even with high demand for homeownership in Pleasanton, fewer homes on the market meant fewer sales during 2023. The 389 single-family detached homes sold during 2023 were the lowest in five years. It is likely that even with lower interest rates, sales activity during 2024 will remain modest compared with previous years.
Buyer enthusiasm for homeownership will remain high during 2024. During 2023, higher interest rates may have dampened prices, and lack of inventory drove down sales activity, yet the pace of sales accelerated slightly. During 2022, a home was on the market an average of 19 days. During 2023, it was 18 days.
Quality of life, again, was a factor. “Pleasanton has high prices, but that’s where people want to live,” Clemons said.
Clemons predicts homes will sell quickly during 2024 and buyers need to be prepared. “It’s still very competitive out there. You need to have all of your ducks lined up, you want every advantage when you get your offer in front of that seller and make it shine as much as possible.”
Clemons said buyers need to have their purchase financing approved before they go home shopping and make an offer. “Just come prepared and come ready to do what it takes to win that home.”
Editor’s note: David Stark is chief public affairs and communications officer for the Bay East Association of Realtors, based in Pleasanton.
