Pleasanton Luxury Home Market

A recent article in the East Bay Business Times brought to light an interesting statistic regarding the Pleasanton Luxury market and Alameda County. Here in Alameda county the number of luxury home sales dropped 37.5 percent in the third quarter from the previous year! Yes that is a large drop, but lets look at the numbers. Ten homes priced $2.5 million or higher sold in Alameda County in the third quarter compared with 16 on ‘06. So, to get a nearly 40% drop only a difference of 6 homes is needed, not too bad when we look at it that way.

Other areas to look into… Homes priced $1.5 million to $2.5 million, 63 homes sold in third quarter, down from 68 in ‘06, again not a bad number by any means. Highest priced home in third quarter of ‘07 was $3.15 million in Pleasanton.

All in all the higher end market is much better off because there are so many more safeguards put in place and most people who are or did buy a $1.5 million home are not in the same ‘creative’ place as people who purchased a $600,000 home 2 years ago.

Just for fun… The highest priced home sold in the third quarter of ‘07 in the Bay was in Atherton for $26 million.

Mohr Estates in Pleasanton Just Listed

Ironwood Estates In Pleasanton Just Listed

Who, Why, Where buy real estate, Today!

Location, Location, Location, Timing – the four most important words in real estate! Forget about trying to get the lowest price or getting the seller repair a leaking drain. This market is bursting at the seams with real opportunities for buyers. Now is the time to make an offer on that home in the location you always wanted. If it’s a certain city you want because of the schools or amenities, go out and get it! If it’s the neighborhood maybe even that certain street; now is the time.
Why is now the best time in years to get into real estate?
1. Options. With the number of homes available to choose from, you can find the right home for you in the right location for you and not become involved in a 12 offer situation. If you don’t like how the front door faces the sun, then find a home with morning light, hey you got options.
Options 3 years ago- What options? You were lucky to find a decent home that was not getting multiple offers. There was once a time when sellers thought that if they didn’t get 3 offers there was something wrong with their home, now if a seller gets 3 people to look at their home they are lucky. A seller will appreciate an offer, wherever it is.
2. Negotiating. Sellers want to sell and many will negotiate till it hurts. Buyers can get a great price, negotiate a rate buydown (it will make you more money in the long run on payments), negotiate repairs and have the seller pay and complete them too. Buyers can also have the seller pay HOA dues, property taxes, money towards closing costs… Sellers want to sell and many times will give you what you ask for.
Negotiating 3 years ago- Good luck getting the seller to make any repairs, you bought it as-is, no questions asked. If you were not the highest of the 12 offers you didn’t get the house. If you were the highest offer, the seller did not make repairs, pay closing cost (buyers usually paid for the sellers). Sellers wanted the fastest, smoothest, easiest closing and a rate buydown, credit back, or low down payment made a seller take one of the 3 back up offers. Sellers had the control.
3. Loan. With the credit market getting tighter and less loans being made, banks want to lend to solid buyers. The cost of a loan to a first-class buyer has gone down. Here is the deal – banks do not want to own real estate, they want to lend money so you can own it. Right now the number of qualified buyers who are actually buying is down. You will have more options when shopping for a good loan because lenders will compete and banks are only lending to solid borrowers.
Loan 3 years ago- probably interest only and adjusting soon if not already. Lenders were lending to borrowers who really could not afford the home, making real estate over valued. Anyone could get a loan and some lenders didn’t care what loan you took, but today the level of service (scrutiny) will be far higher and you will get a better loan that will cost you less in the long run because the bank will not take your house.
4. Timing. If nobody buys a house should I? Yes, because of all the points above. Think about it this way- you get what you want, with the terms you want. Better then that when the market is like it was 3-4 years ago, your home will be the home with 40 offers on it. Buy low sell high, it comes down to the basics of economics, supply and demand and doing a little research. Is this a great market or what!!!
5. Who is Buying Real Estate? The other night I caught a program in which Donald Trump was being interviewed. The Donald, one of the greatest real estate investors, said he had not been buying real estate for the past 3 years, but has now started purchasing more real estate. Yes, Donald Trump is now buying more real estate than he was in the past 3 years! Why would he now buy more real estate? For the reasons stated above. Smart investors understand that they can take advantage of the market and when it turns the other way; they sell and strike it rich.
Action Steps:
Follow the lead of smart investors like Donald Trump. Do research on where you buy and remember you have choices and negotiating power. Your loan will be safer than past years and you can probably get sellers (yes sellers because you will buy numerous homes) to buy down your interest rate. Don’t listen to your friends who say it is a bad time to buy, they probably bought a home within the past 3-4 years and are mad they didn’t wait till now, or they are facing foreclosure. Timing – if you bought a home in 1990 you would have made close to 300%, even if you sold today!

-Tyler Moxley

Just Listed 681 Saint John Pleasanton

Located in Downtown Pleasanton, close to shopping dining and 680.

4 Bedrooms, 2.5 Baths, 2,159sf.

Oak Grove in Pleasanton Approved

Pleasanton City council wrapped up the meeting at about 12:00 on Tuesday night with a final decision to approve the 51 residential lots of Oak Grove in Pleasanton with 496 acres as open space. In a 4-1 vote Councilwoman Cindy McGovern was the only no vote on the Oak Grove development. Originally in 1992 the development passed and was set to have 86 home sites, and a golf course. As city government changed with new elected officials and the slow growth stance of Pleasanton in the ’90’s the project was sidelined by community opposition and council favor. The Lin family returned many years later with a 98 home development and the exclusion of the golf course. The council and community wanted to less home sites and a compromise of the current 51 homes was reached. With the approval of the Oak Grove development there are also many conditions the Lin family and the developers must do. Affordable housing in the amount of 20 units will be constructed by the developer in another location in Pleasanton, the purchase of a fire engine, improvement to other intersections in Pleasanton and $1 million for other infrastructure throughout Pleasanton, as well as the 496 acre open space with trails, paid for by the developer. For more information on the Oak Grove project you can visit the city website.

Pleasanton City Council Meeting – Oak Grove