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Buyers were willing to compete and pay a premium for homeownership in Pleasanton in the first few months of 2024.
During 2023, homebuyers were faced with mortgage interest rates significantly higher than previous years. They responded by making less aggressive offers on homes for sale which, for the first time in almost a decade, drove down sales prices.
According to the California Association of Realtors, mortgage interest rates peaked at more than 7.5% during October 2023. Mortgage rates during the first quarter of 2024 are now hovering in the high 6% range. These slightly lower rates compared with 2023 are resonating with buyers eager to call Pleasanton home.
Buyer enthusiasm for homeownership in Pleasanton during the first quarter of 2024 outweighed concerns about interest rates. The median sales price for a single-family detached home in Pleasanton jumped from $1.4 million in January to $1.9 million during March.
“I’ve not seen any drop in prices, no lowball offers or anything like that. So, it’s strong,” said Barbara Clemons, 2024 president of the Bay East Association of Realtors.
The last time prices approached, or exceeded, this amount was during March 2022 when mortgage interest rates were in the high 3% range. Further evidence that buyers are willing to pay a premium in Pleasanton.
Potential buyers shopping for a home in Pleasanton so far this year haven’t had many choices. The number of single-family detached homes for sale during the first quarter of 2024 was off the pace compared with the same period during 2023.
High prices and limited choices didn’t appear to faze some buyers who made purchase offers quickly. A single-family detached home was on the market in Pleasanton for an average of 16 days during March, compared with 18 days during the same period last year.
Clemons has advice for both buyers and sellers in Pleasanton. For buyers, Clemons said, “The market is still really good; I would say get in sooner rather than later because it’s heating up.”
Asked how a buyer, faced with limited choices and high prices, can become a homeowner in Pleasanton, Clemons suggested, “Buyers can’t really cut corners. That’s why they need a trusted Realtor to help them walk through the process and make sure they have a successful transaction.”
For sellers, Clemons shared that even with the current market conditions in Pleasanton, a seller should consider making improvements before putting their home on the market. “The homes that get the best prices are the ones that are fixed up or staged because people want a turnkey home if possible,” Clemons said. “Get it in shape to be sold.”
Clemons had another suggestion for sellers that may help buyers, as well: concessions.
“Sellers are making a few concessions with buyers. Sometimes they are assisting with the down payment or they’re helping with flooring or painting or something like,” Clemons said. “It’s a negotiable area and sellers may be more flexible in that area.”
Editor’s note: David Stark is chief public affairs and communications officer for the Bay East Association of Realtors, based in Pleasanton.