February Market Update

February 13, 2024

February Market Update

Inventories are increasing in most Tri-Valley cities, except San Ramon, where there has been a slight decline. Several indications suggest a relatively significant increase in new listings shortly. Last week, I put two homes on the market, and I have four more currently being prepared for the market over the next few weeks. Our inspectors are very busy and booked out for one to two weeks instead of having open availability. One of our inspectors has seen a 100% year-over-year increase in new orders compared to last year. Several agents I spoke to also have several listings currently being prepared for the market. Given our extremely low inventory levels, I don’t think the upcoming surge in listings will get us back to a healthy balance of available homes vs. buyers, but it may help a little bit, at least.

Despite rates above 7% again, buyer demand remains strong across all price ranges. We see the most activity in homes under $2M, with many receiving multiple offers exceeding the asking price. My recent listing on Del Sol in Pleasanton received thirty-four offers yesterday, all of which exceeded the asking price. Del Sol was unique because it was a fixer-upper priced very aggressively. I expected several offers but was shocked by the final number of offers. Today's hotter-than-expected CPI (Consumer Price Index) number points to inflation being more stubborn than expected, and rates increased as a result. If rates continue to climb, it could have a dampening effect like we saw in late 2023 when the rate hit the 8% level.

Current inventory levels as compared to January:

City                          Today           January

Pleasanton :            36                    28

Dublin:                      32                    22

Livermore:               55                    44

San Ramon:            33                    37

Danville:                  49                    33

Alamo:                     22                     11

Let’s Talk

You’ve got questions and we can’t wait to answer them.