Danville Area Real Estate: Millennials Enter the Market!
I have always defined 4 bedroom homes as family homes as they represent the majority of homes in our market of Alamo, Danville and Diablo and for the most part, people seek to live here because of the location and the quality of our schools. We often hear from prospective buyers that they are willing to trade a bigger commute for the high quality of family life these three communities provide. So this month, I thought I would look at the 4 bedroom home exclusively. Condos and townhomes are not included. These 4 bedroom homes are both single and multiple story and bathroom count isn’t considered. Neither is the presence or absence of a pool. Truly, the only commonality they share is 4 bedrooms and their respective locations.
The Town of Danville leads the area with the shortest time from listing to sale at 15 days. During the most recent time period, Danville came in at 25 days and Diablo at 121 days. Although Diablo’s days on market appear to be relatively high, they are actually coming down. This suggests growing strength in the market for expensive Real Estate. A normal market would be 3-6 months from listing to sale. So, for these type of properties only Diablo is normal and Alamo and Danville are still red hot.
Diablo leads the pack when it comes to average sales price coming in at nearly $2.7 million. Alamo is number two with a sold price of $2,005,000. No surprise that Danville trails both these locations. Danville registers an average price of $1,456,220. When you compare the price to days on market for each of the three markets, we would expect lower priced homes to sell more quickly and the Danville numbers confirm this. Of significance is that Danville alone has a higher average closing price than list price. A buyer in Danville could anticipate having less leverage with sellers than those purchasing in either Alamo or Diablo.
The largest 4 bedroom homes sold are located in Diablo with an average size of 5,110 sq. ft. Alamo comes in at number two at 3,686 square feet. Danville homes are significantly smaller at just over 3,000 square feet. Alamo wins the battle of dollars paid per square foot coming in at $558. Diablo sits at number two with $542 per square foot and Danville trails both with $488. It’s normal for larger homes to sell at a lower value at the square foot level, so these data should come as no surprise.
It seems incredible that the Real Estate Market continues to be strong without a sign of weakening demand. In recent articles I’ve discussed many of the possible reasons for low inventory, but what about the other side of the equation, demand? Bay Area employment continues to be strong, more office space is being created in San Francisco and the Valley so I think we can anticipate more people in the future. Interest rates remain historically low and new home construction cannot rise to meet current demand which I think portends Real Estate prices moving up in lock step with the Millennial Generation as they advance in their careers and seek quality schools and larger homes.
In recent months, I’ve witnessed what I believe to be the beginning of Millennials entry into our upscale markets. Older Millennials who are reaching their late 30’s are beginning to show up at open houses. Presently they appear to be limited to professional couples, mostly Doctors and Lawyers. Recently, Nancy and I have encountered several Millennials, well-qualified young couples, whom are making serious runs at pricey properties. Although a small force today, over the next 10 years the Millennials could potentially, due to their numbers, exert an even greater impact on Real Estate than perhaps even the Baby Boomers. I am hopeful that this just the beginning of an incredibly exciting time in Real Estate.
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It’s important to remember that there really is no “average” home and no two homes are exactly alike. If you would like an honest “no strings attached “opinion of your home’s current market value and suggestions for preparing it for market, please give me a call 925-989-6086 or send me an email firstname.lastname@example.org. Please visit our website to discover more information on our local market www.thecombsteam.com
Call me if you would like an honest estimate of your home’s value. 925-989-6086. Email me at email@example.com to receive the electronic version of this monthly article. To find archived articles for Alamo and Danville Real Estate, please visit our website at www.thecombsteam.com Visit our Facebook Page “Real Estate Services for Danville, Alamo and more”.
Joe and Nancy Combs, The Combs Team, have a high degree of focus on Danville Real Estate Market and Alamo Real Estate Market and sell Real Estate throughout the East Bay. As always, if you have any questions about the Alamo and Danville California real estate markets, or finding that perfect home for sale in the East Bay, please let The Combs Team know! Call Joe Combs 925-989-6086 or Nancy Combs 925-351-6999.
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Data presented in this column is based in whole or in part on data supplied by the Contra Costa and Alameda MLS service and other quoted sources.
This newsletter is not intended as a solicitation if your home is already listed with another agent
Joe Combs, Nancy Combs, The Combs Team, J. Rockcliff Realtors and the MLS service do not guarantee the accuracy of this information. DRE #0144125.
Seller and Broker believe this information to be correct, but accept no legal responsibility for accuracy.
Broker believes this information to be correct, but accepts no legal responsibility for accuracy.
Buyer to investigate and verify all measures of square footage.