The total inventory of single family homes increased in February by 17 homes, a 17% increase over January. Because of the inventory gains in homes priced below $2 million, there is now approximately 2.3 months of inventory in Pleasanton, up from 2 months at the end of January. Pending sales increased by two to 52 at the end of February.

All Pleasanton Single Family Homes
Inventory Vs Pending Sales Feb 2010

Homes priced below $1 million saw the greatest increases in both inventory and pending sales in February. Inventory increased 12 units or 24% to 61 homes. That gets us back to the levels we saw in October and November of 2009 but still considerably short of the 128 homes on the market in February 2009. Pending Sales in this segment increased 25% or 9 units to 45 in February. That is a strong number for Pleasanton, especially compared to the 16 pending sales we had in February 2009. With increases in both inventory and sales, inventory remained nearly unchanged at 1.4 months.

Pleasanton Single Family Homes Under $1 Million
Inventory Vs Pending Sales Feb 2010

Inventory increased and pending sales decreased in the market for homes priced between $1 million and $2 million. Single family homes in this price range made up 32% of the inventory but only 10% of the sales in Pleasanton. Inventory increased by seven to 38 homes in February. Meanwhile, there were 5 pending sales in this price bracket in February, down from 7 in January. There were 7.6 months of inventory at the end of February, up from approximately 2.6 months at the end of January.

Pleasanton Single Family Homes $1 Million - $2 Million
Inventory Vs Pending Sales Feb 2010

In the luxury home segment, the market for homes priced over $2 million saw inventory decrease by 2 homes and pending sales remain the same at two. This segment accounted for 17% of Pleasanton’s inventory but only 3% of pending sales at the end of February. There is about 10 months of inventory, down from 11 in January.

Pleasanton Single Family Homes Over $2 Million
Inventory Vs Pending Sales Jan 2010

It looks like we may be starting to build some momentum heading into Spring. Demand is strong and inventory is looking up, particularly in the lower to middle range of the market. The low end is still very hot, and the mid range of the market is seeing some move-up buyer activity as buyers take advantage of lower prices and attractive interest rates. And to think, we are not even in the Spring market yet!

But rather than tell you what you can find, I thought it might be best to show you in pictures.

Overall, inventory increased to 116 single family homes at the end of February, up from 113 at the end of January and 100 at the end of December. Those are modest gains off December’s low. Demand picked up, though, with pending sales showing a 36% increase in February to 57. January’s pending sales were 42, up 35% from December’s 31.

All Danville Single Family Homes
Inventory Vs Pending Sales Feb 2010

The market for single family homes priced under $1 million got significantly tighter over the past two months. At the end of February, there was 1.4 months of inventory in this price range, down from 2.25 months in December. The absolute level of inventory increased modestly to 61 at the end of February, from January’s 60 and December’s 54. Pending sales, meanwhile, nearly doubled from December’s 24. There were 45 pending sales at the end of February and 34 at the end of January.

Danville Single Family Homes Under $1 Million
Inventory Vs Pending Sales Feb 2010

The market got tighter for single family homes priced over $1 million, as well. At the end of February, there was 4.6 months of inventory in this segment, down from 6.6 months at the end of December. In absolute terms, inventory in this price range increased to 55 at the end of February, up from 53 in January and 46 in December. Pending sales posted strong increases off December’s very low level of seven. January only had eight pending sales but there were 12 at the end of February.

Danville Single Family Homes Over $1 Million
Inventory Vs Pending Sales Feb 2010

Demand increased overall in Danville over the past two months and the market tightened up a bit. Single family homes priced under $1 million showed the greatest demand and that segment is significantly tighter than homes priced over $1 million. The absolute level of inventory is headed upward as we enter Spring, hopefully, a trend that will continue.

Overall, the inventory of single family homes increased by 9 in February, a 14% gain. There were 16 more pending sales at the end of February than January, a 50% increase. With sales increasing more than inventory, the San Ramon market tightened in February. There is now approximately 1.4 months of housing on the market, down from 1.7 months at the end of January.

All San Ramon Single Family Homes
Inventory Vs Pending Sales Feb 2010

Single family homes priced under $1 million were the hot segment in February. There were 45 pending sales at the end of the month, a 50% increase from January’s 30 pending sales. Inventory also increased but not as much. Inventory increased by seven homes or 16% in February. There is now just barely more than one month of inventory in this price range.

San Ramon Single Family Homes Over $1 Million
Inventory Vs Pending Sales Feb 2010

It was significantly quieter in the market for single family homes priced over $1 million. Inventory in this segment went up only two homes to 24 at the end of February. Pending sales increased by only one at the end of February to nine. There is now 2.67 months of inventory in this price range.

San Ramon Single Family Homes Over $1 Million
Inventory Vs Pending Sales Feb 2010

It’s good to see increases in both inventory and sales in San Ramon. Inventory is still at a very low level and demand appears to be strong so the market tightened up during February. We’re still looking for more inventory headed into Spring.

Perhaps more of a tear down but you never know – how ambitious are you?

Renovation financing through the 203(k) program allows the costs of needed repairs and improvements to be included in the FHA federally-insured loan amount instead of having the buyer come up with cash or a separate loan to do the work.

FHA home loans require certain health and safety standards be met and that needed repairs identified during the inspection process be completed before escrow closes. However, minor repairs and improvements costing between $5,000 and $15,000 can be done after escrow closes for borrowers who opt for a streamlined repair program.

A 203(k) loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures, said Sheri Powers, director of the Homeownership Center at Unity Council.

The loans can also be used to pay for improvements such as new appliances, second-story additions, remodeled kitchens and bathrooms, and skylights, just to name a few examples.

At a time when equity loans are hard to get, the program can also be used as a refinancing vehicle for borrowers who want to do repairs and improvements, provided the value of the home is greater than the value of the loan.

The program is gaining in popularity but there were still only 219 203k loans issued in the Bay Area in 2009. There are some limitations to the program and, obviously, some government paperwork. But this can be a great vehicle to allow you to get into a home that needs some work or just do some renovation you would like done. With the number of short sales and bank owned properties out there, this program could see more applicants. It helps to have someone on your side that understands the process, so if you think you would like to pursue a 203k loan, give me a call and I can point you in the right direction.

Inventory increased seven units, to 36, from 29 in January. Pending sales, meanwhile, increased eight, from 29 at the end of January to 37 at the end of February. These are very strong sales figures, especially given the low inventory level. It appears that the Dublin market could absorb considerably higher inventory levels.

All Dublin Single Family Homes
Inventory Vs Pending Sales Jan 2010

It’s certainly good that we have an increase in inventory for two straight months but the level is still very low and it looks like we are going to need more to meet the demand. Normally, we would expect to see inventory increase as we enter the Spring. We could certainly use it given the strength of the demand in the Dublin market right now.

The art does not stop there.  Danville’s neatest gallery is incognito, operating under more utilitarian guises.  The next time you visit downtown Danville, take a closer look at the garbage before you throw away the paper vessel that carried your precious Starbucks Caramel Macchiato.  You might be surprised to see colorful tile art adorning the garbage can enclosure.  Now take a few steps down the street and check out the next garbage.  You’ll discover another one-of-a-kind piece.

Danville’s most public gallery of unique art is its collection of trash containers throughout the town’s downtown.  The Public Tile Art Enclosure Project began in 1996 in an attempt to replace and beautify the town’s old wine barrel garbage containers.  Each piece is unique, submitted by local artists and community groups, and displays themes representing the quintessential way of life in Danville.  There are tile art pieces on the local bird life, the historic train station, and even events such as Danville’s Hot Summer Nights.

What a wonderful way for the town and the community to work together to beautify even the most mundane and pragmatic objects.  It’s those little details that really make Danville a beautiful place to live.

The active listing on Raven Road is listed for $769,950, which equates to $380 per square foot. It has been listed for five days. It is not distressed (REO or short sale).

The three pending sales are listed for $751,283, on average. That is $332 per square foot. They were listed for an average 12 days. The Shearwater Ct. home is a short sale and the property on Starling Ct. is REO.

There have been approximately two closed sales a month in Pleasanton Valley/Birdland. On average, the 13 closed deals were sold for an average price of $642,100, or $345 per square foot, which was 97% of the asking price. The homes sold, on average, in 46 days.

Located in the geographic heart of Pleasanton, Pleasanton Valley and Birdland have easy access to schools, parks, freeways and just about everything in Pleasanton. They include one and two story homes with two and three car garages. “Birdland” is so named because the streets are named after common birds.

The loan contingency and stated terms of the financing section protects the buyer against sharp increases in interest rates or unanticipated changes in loan terms. For example, the buyer may have stipulated a loan amount of $900,000 at a rate not to exceed 5.5% fixed with 0 points. If the buyer is not able to obtain a $900,000 loan at the stipulated rate and terms, then the buyer may cancel the agreement. For example, if rates shoot up and the market rate becomes 6% for this loan, the buyer will not be obligated to proceed. Obviously, the buyer can still elect to move forward in this situation, but they are not obligated to.

As a seller, you should insist on a pre-qualification letter, or better yet, a pre-approval letter from a lender indicating that the stipulated rate and terms are obtainable at the time the buyer submits the offer. It is also important for sellers to pay attention to the financing terms specified. If the buyer stipulates an interest rate or terms that are not available today, you might be in essence giving the buyer a free option on the property, as they can indicate prior to contingency removal that they are unable to obtain this rate and terms, and thereby cancel the agreement. Make sure the rates and terms are achievable.

There is another side to this. Implied in any contract is the covenant of good faith and fair dealing. If a buyer purposely derails the loan process by not providing information to the lender, or instructing the lender not to order the appraisal, or otherwise sabotaging the process so they can claim that they were not able to obtain the loan, one could make a strong argument that the seller might be entitled to the buyer’s deposit on the basis that they acted in bad faith. Obviously, other factors outside the buyer’s control can also derail the loan contingency, such as a job transfer, loss of a job, or other financial catastrophe that makes it impossible for the buyer to obtain a loan. In these cases, the buyer can cancel the agreement if they have not removed their loan contingency.

Sometimes, Realtors do not stipulate the buyers rate and terms, and instead the buyer’s agent will add “buyer to obtain the best possible rate and terms available”. This can be dangerous, however, if rates shoot up or the lender the buyer was planning on using suddenly decides to discontinue the loan program the buyer was counting on. Strictly from a contractual perspective, that kind of language may obligate the buyer to get any loan available, regardless of the rate and terms, in order to fulfill the contract.

Lastly, the buyer should definitely lock in their loan rates and terms as soon as possible to prevent a situation where the rate goes up and they no longer qualify, especially if they have removed their loan contingency.

Like many clauses in the contract, the loan contingency is there to protect the buyer against unanticipated changes that might impact their capability or willingness to proceed with the purchase. Buyers should carefully consider the impact of this contingency, and (as always) consult with an attorney for advice relating to their specific situation.

The closed sales sold for an average price of $960,250 or $313 per square foot, which was 92% of the asking price. Most neighborhoods in the Tri-Valley have been seeing sales prices of 95% - 100% of the asking price. The homes were on the market, on average for 70 days. Only one of the homes (4931 Monaco Dr.) was distressed (it was bank owned).

Built in the mid-1980s, these Victorian inspired homes are located close to downtown Pleasanton near the intersection of Bernal Ave and First St. Several of the homes in this desirable neighborhood have fabulous views of the Pleasanton Ridge and downtown.

Estancia de Cafayate is the brainchild of the American financial author and investor Doug Casey, who calls himself an “anarcho-capitalist” and was a classmate of former President Bill Clinton at Georgetown University in Washington.

“Here we have fresh air, wonderful hiking, fine wines and great food, and Argentina generally offers an ideal combination of culture and climate at a low cost,” he added. “Think 10 percent of the value of anything comparable in Europe, for example.”

The development covers 1,360 acres, in a district where tourism and winemaking (midrange whites from the torrontés grape in particular) — not to mention subdivision preparation and golf course landscaping — are bringing evident prosperity. Some 500 of the 12,000 residents from the nearby town of Cafayate have worked at the development over the last three years. For the moment, only a handful of hacienda-style properties have been built, but when the foundations of more homes are dug, and residents are ready to hire staff, that number is set to rise.

Mr. Casey expects that, when the shared facilities are completed in 2014, the Estancia de Cafayate will have around 50 of its projected total of 360 homes. Plots are being sold for an average of a little more than $6 per square foot, and range in size from 16,145 square feet to 18,300 square feet. In Argentina, land for luxury residences is routinely priced in U.S. dollars. Building costs, meanwhile, are averaging about $400 per square foot.

With a climate similar to the western United States, this might become the next big thing. I just gotta brush up on my Spanish!

Source: NY Times

The four active listings have an average asking price of $1,040,950 or $367 per square foot. They have been listed for 73 days, on average. The pending sale on Mohr Ave. has been on the market for 22 days and is listed at $1,472,900 or $320 per square foot.

Of the four closed sales, three are on Mohr Ave. and have large lots (18,000+ square feet). The average sales price was $1,262,500 or $327 per square foot, which was 97% of the asking price. The homes sold, on average, in 118 days.

Located East of Santa Rita Road off Mohr Ave, Mohr Park Estates and Charter Oaks are upscale homes with generous floor plans and luxury amenities. Both neighborhoods are close to award winning Mohr Elementary School, and centrally located with good access to freeways, BART, downtown Pleasanton, parks, and shopping. There are also walking trails nearby that run along the quarries.

Have you ever wanted to take a painting class?  Practice your French?  Learn ballroom dancing?  Perhaps you have a budding martial artist and need a place to let her kick around?  Or maybe you need to map out your child’s Spring Break plans and are looking for a good camp to fill up the week?

Now is a good time to visit the San Ramon Community Center.  They publish quarterly Recreation Guides, as well as a special Summer Camps guide each year.  Right now, you can access the Winter/Spring Guide online, which has a very wide variety of classes for all age groups.  The possibilities are endless, whether you are interested in fitness/sports, the visual or performing arts, or enrichment.  They even offer online classes and volunteer opportunities.

It doesn’t matter if you are two or 62, there’s something to do, something new to learn, and new friends to meet, right in our community!

In a new survey from Portfolio.com, seven of the top ten “wealth centers” in the country are in the Golden State.

The survey combines several measurements from the Census Bureau, including per capital income, median income, the percentage of incomes over $200,000, and home prices.

Newport Beach, California, ranks #1, with a median income of $124,000. Twenty-nine percent of residents in this Orange County enclave haul in at least $200,000 a year, and the median home price is $1,000,001.

Coming in second is Newton, Massachusetts, outside Boston. Newton actually trails third-placed Pleasanton, California in all the big ticket categories except one: per capita income, which comes in at $56,000. Meantime, Newton’s median income is $104,000, and 22 percent of its residents earn more than $200,000.

Here are the top ten wealth centers along with the percentage of residents earning more than $200,000:

1. Newport Beach, CA–29 percent
2. Newton, MA–23 percent
3. Pleasanton, CA–24 percent
4. Arlington, VA–16 percent
5. Santa Monica, CA–14 percent
6. Mountain View, CA–14 percent
7. Thousand Oaks, CA (my town!) –14 percent
8. San Francisco, CA–14 percent
9. Sandy Springs, GA–18 percent
10. Sunnyvale, CA–14 percent

Wow. That is heady company. What is more amazing is that some of the other well known cities such as Alamo, Blackhawk, Orinda, Carmel, Tiburon, Saratoga, and even Beverly Hills did not make the list. So…. do you feel rich? Just wondering.

UPDATE: Thanks to Carl for pointing out that the study only includes cities with populations over 75,000. That would explain the absence of some of the notable cities above.