Pleasant Hill – The new Land of Milk and Honey!

Cary Amo | http://yourlafayettea.wpengine.com

Well, Buyers and Sellers, hold onto your hats, the Feeding Frenzy has started up again.  In the last 6 weeks the market has really heated up especially in Pleasant Hill.  That’s NOT to say that it’s cold in other Central Contra Costa towns.  My fellow realtors are seeing the same type of market inConcord,Walnut Creekand Martinez, Danville and San Ramon.

I was able to get a buyer into contract last November on a Pleasant Hill home at 1943 Patricia Dr.  There were 4 offers on this property priced at $379K (1,461sf – Investor flip).  My client was the wining bid and paid $394,000.  This was a symptom of things to come.  During the months of April and May, I was working with a buyer looking to purchase a home in Danville, San Ramon or Dublin up to $750K.  We saw one San Ramon home (Windemere) priced at $749K get 10 offers (a 2,300sf really nicely updated).  Ironically, it only sold for $755K.  However, every home we saw come onto the market under $650K in Danville, San Ramon, Dublin or Pleasanton that was nice, was sold in less than 10 days usually with multiple offers.  Again, this was another indication that the “Buyer Feeding Frenzy” was on the horizon.

Now that my focus has turned to Pleasant Hill as I get ready to put a new listing on the market, I’ve started to track the sales in this quaint Contra Costa town.   Here’s what I’ve found.  I’ve listed a couple of recent sold properties.  The pending properties have to be kept somewhat vague because they haven’t closed yet.

Cary Amo | http://yourlafayettea.wpengine.com

 

So what’s the cause of this Buyer Crazy market?  Well, if you didn’t know that interest rates were at 30 year lows (maybe longer), you must be a bear in hibernation.   Conforming interest rates are under 4%, FIXED for 30 years.  The inventory for almost all of the Central Contra Costa towns is 1 month or less.  The “SHADOW” inventory we’ve been hearing about JUST ISN’T SHOWING UP!  The result is that buyers are now anxious to take advantage of these phenomenal interest rates and buy their new home NOW.  With the number of offers being made on homes, there are a lot of NON-WINNERS (I don’t want to refer to them as losers because they’re not losers, they just didn’t win the bid).  You add to that the fact that only Alamo, Lafayette, and Orinda barely have 2 months inventory and all the remaining communities of Concord, Walnut Creek, Pleasant Hill, Martinez, Danville and San Ramon all have 1 month or less inventory – HERE COMES THE PERFECT STORM (for sellers).  Well it’s not really a perfect storm, however if you were thinking of selling, IT SURE IS A GOOD TIME!

This current pent up demand for buying will likely exceed the number of new homes coming onto the market, potentially for the rest of the year.  We also are hearing that interest rates will stay low for the remainder of the year.  If both of these happen, the average sale price for almost all communities in Central Contra Costa will see a spike in values, which is probably a good thing, ultimately.  And the most interesting notion is that the new number of homes coming to market will not keep up with this buyer demand – ERGO THE FEEDING FRENZY CONTINUES!

 

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