Situated at the southern end of San Francisco's East Bay region, Pleasanton has long been a preferred destination for those escaping the urban confines of San Francisco, Oakland, and San Jose without venturing too far away from it. Its excellent schools draw families from across the Bay Area, and its status as a central hub for business, including serving as the headquarters for Workday, Safeway, and Roche Molecular Systems, makes it an appealing home for professionals.
Renowned for its beautiful, well-conceived neighborhoods — Castlewood and Ruby Hill among them — commitment to preserving its historic downtown and proximity to a vast array of outdoor activities, Pleasanton caters to various lifestyles. Add in its rich cultural offerings, which include a diverse collection of architecture and the home to the Alameda County Fairgrounds and 111-year-old Alameda County Fair, and it's easy to understand the charm and appeal of Pleasanton.
The marketplace
Pleasanton is often recognized for redefining luxury suburban living, evidenced by its historic downtown, scenic landscapes, and community-centric ethos. It's a unique blend of small-town appeal and upscale sophistication that continues to set the area apart from other East Bay cities.
The area's strength, though, is in its homes and neighborhoods. There are more than 30 distinct areas of town, each unique community breathing life into the Pleasanton landscape. Homes range from magnificent, million-dollar estates to more modest residences that still command a premium from buyers and investors.
There are approximately 26,000 residential properties, 75% of which are single-family residences. Homeownership sits at nearly 70%. For luxury home seekers, the widest variety of the city's real estate is $1.5 million to $2 million.
Pleasanton also features a healthy market of homes above the $2 million mark. Primarily located in the far western third of the city — the West Side — in the shadow of the 5,271-acre Pleasanton Ridge Regional Park, homes in this expanse can easily land in the $5 million to $10 million range.
Market prices and trends
As 2023 ended, real estate activity was muted across the Pleasanton residential market. Aside from the outlier of December 2021, when mortgage rates were near their historic lows, the year's final month is often the slowest period for home purchases, as reflected in several metrics for single-family transactions, noted below:
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Current month inventory: Heading into 2024, there were 20 homes listed for sale at the end of December. That represents roughly 0.7 months in inventory for the Pleasanton market, down from the same time last year and matching the year's lowest monthly supply totals. Overall, Pleasanton averaged approximately 1.1 months of inventory for 2023.
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Sales: Home sales ended the month with 23 homes sold, a 10% increase from December 2022. For the year, 419 homes sold, a 26% decrease from 2022 and a 55% drop from the outlier of 2021.
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Median sales price: Median sales price remained relatively steady year over year, sliding only 2.3% from $1,537,000 in December 2022 to $1,501,000 in December 2023. The average sale price, however, increased by 11.9% year over year.
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Days on the market: Arguably, the most dramatic change stems from days on the market, which saw a 61% decrease — from 36 days in December 2022 to 14 days in December 2023. Overall, outside of a slow start to sales in January and February 2023, which averaged 39.5 days on the market between them, the final ten months of 2023 averaged just 13.3 days.
Forecast for 2024
Looking ahead to 2024, expect interest rates to continue to shape Pleasanton's real estate landscape. Many predictions have the rate for a 30-year fixed loan falling into the 6.5% territory towards the latter half of the year. More optimistic outlooks believe a year-end rate nearer 6% is possible.
If a decrease comes to fruition, it may pull more current homeowners who need to relocate or have been wanting to sell into the market. A narrowed rate gap takes the sting out of losing a current, coveted mortgage term if the listing results in a highly lucrative sale.
In turn, the additional listings will help boost inventory. However, when shopping for a home in the current market, expect overall home prices to increase as more buyers are enticed to the marketplace that cannot placate demand for at least the next 12 to 18 months.
Buyers able to secure a home early in the year will have the advantage of tapping into a home's appreciation sooner if they're willing to navigate higher mortgage rates in the interim (with the idea of refinancing once the rates decline). Of course, all-cash purchases play well in any market, even proving financially advantageous for buyers with the means to absorb the higher upfront costs.
For Pleasanton owners ready to sell, timing and pricing a listing to capitalize on buyer demand will prove crucial to a successful sale. Remain aware of fluctuations in interest rates and their impact on buyer interest and affordability (as well as what it means for your own financial situation). Also, pay attention to the importance of your property's condition. Even in the most steadfast seller's markets, luxury buyers expect and are willing to pay a premium for turnkey homes.
Ready to start the home buying or sales process?
If you're interested in discovering even more about the East Bay region, including Pleasanton's outstanding luxury real estate market, contact Susan Schall today. Allow Susan's experience and expertise to help guide your Pleasanton real estate journey, ensuring your transaction is financially and personally rewarding.