Danville Area Real Estate: Prices Up and Down Again!
In our local Danville Area Market which includes Alamo, Danville, Diablo and Blackhawk, homes are selling at rate of about 122 units per month. This is 3 more than during the same time last year. Distressed home sales are down from 10% in 2014 to less than 1% today. One to two percent distressed sales would be considered normal.
The Town of Danville leads the area with the shortest time from listing to sale at 15 days. During the most recent quarter Diablo had the longest time from listing to sale with 49 days. A normal market would be 3-6 months from listing to sale. So, this is definitely not a normal market. Although cooling a bit, it remains a hot market. Homes priced right continue to sell quickly. Prices, while gently advancing, appear to be slowing a bit.
Average sales price for an Alamo home dipped from $1,859,639 in the 2nd quarter of 2016 to $1,771,472 in the 2nd quarter of 2017 for a 5% drop quarter on quarter. Nearly all of this price decline is due to the average size of the homes decreasing. They shrunk by 263 square feet during this time, while dollars paid per square foot advanced a little less than 4% from $534 to $552.
Diablo showed impressive gains during the 2nd quarter year over year with average sales price increasing from $1,674,000 to $2,230,811for a 33% increase in price. Dollars paid per square foot grew from $472 to $562 for about a 19% increase. The average size of a home sold in Diablo was up about 200 square feet, so some but not all of the increase was driven by size. You may recall, there was a point during the last market peak when Diablo was the 4th most expensive zip code in the U.S. Price strengthening in Diablo is a good sign that the overall Real Estate Market is becoming normal.
Blackhawk showed small gains during the 2nd quarter year over year with average sales price increasing from$1,614,028 to $1,632,847 for a 2% increase in price. However, dollars paid per square increased more dramatically from $444 to $479 for about an 8% increase. The average size of a home sold in Blackhawk was down about 150 square feet, so while average price grew moderately, buyers actually got less house for their money than last year.
Danville, last year’s fastest growing community did not grow. In fact, average sales price moved from $1,200,951 to $1,175,856 about a 2% decrease. During the 2nd quarter last year Danville carried an average square foot price of $500. This year that number dipped to $491 per square foot. Home size was not appreciably different from last year. Arguably, on a purchase price of $1.2 million a $25k difference is probably meaningless.
Last year’s unevenness in the market continues. Some numbers up, some numbers down. This may or may not be a trend, but it certainly is something to watch. I continue to be persuaded as I was last year that we are experiencing a softness in the market for larger multi-story homes that aren’t truly luxury homes. While overall inventory remains low, it appears that the supply of these bigger homes is growing faster than demand. Looking at current inventory, the picture is clear. About two thirds of Alamo unsold inventory is multi-story. With the exception of Diablo, the size of all homes sold in the second quarter were appreciably smaller than last year.
As I mentioned last year, this may make sense in light of the growing number of downsizing Baby Boomers looking for smaller single story alternatives. As I look about, I see the parents of Baby Boomers making the same downsize move as their Boomer Children.
I don’t think we have ever experienced two generations downsizing in such great numbers as we are seeing now. The Boomers are a large group and Generation Xer’s who follow them are much smaller in number. The X generation isn’t large enough in number to pick up the slack, so I suspect this softness will persist for a time. Meanwhile, the Millennial generation, with sufficient numbers to fill the gap left by the Boomers aren’t there economically yet, but their time is not too far off.
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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.
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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.