The June 2012 Pleasant Hill Real Estate Market Summary is the story of changing demographics creating new competition for Pleasant Hill homes. Let me start with the numbers.
In June, 2011 there were 93 detached homes for sale with an average Absorption Rate based on Pended sales of 32.3% (i.e. the percentage of listed homes that went into contract).
In June, 2012, there were 23 detached homes for sale with an Absorption Rate based on Pended sales of 121.7%. What? More homes went Pending than were for sale? How can THAT happen? The Pleasant Hill real estate market is so hot that homes are resold immediately if the buyer cancels the transaction or their financing cannot be concluded. The new transaction shows as a new Pending on the same listing.
The changing demographics are, frankly, the real story behind the statistics. For years, Pleasant Hill has been an entry point for home ownership. Good schools, established neighborhoods, close to transportation (including BART), shopping and entertainment. But here is an important point – a significant number of Pleasant Hill homes are single story making Pleasant Hill a desirable option for downsizers who no longer need their larger, two story homes because their children have left home and are established. The combination of first-time buyers and downsizers competing for the same homes is causing Pleasant Hill property to sell in record time with multiple offers.
This dramatic change in the market requires home buyers to change their house hunting and Offer strategy.