Danville Area Real Estate: Great Start in 2014Although the early season in Real Estate is not a great predictor for the entire year, I thought I would look at the first 2 months of 2014 and see if there is anything useful to be gained by an analysis of this same time period last year. I’ve used red and green in the chart to indicate the direction of change, green for the positive and red for the negative. Days on market must be interpreted in the opposite as a negative change in days on market means market time is decreasing which is a good thing.
The vast majority of indicators on the chart are green which portends well for another really good year for
Danville Area Real Estate. An exception is in Alamo where the number of homes sold declined a bit, the prices are off a tad and dollars paid per square foot declined for the first time in a long while. Is this reason for concern? It’s probably not. It’s just a small hint market prices in Alamo are unlikely to continue growing as fast as we have seen them during the past 3 years.
A significant issue in Alamo is lack of inventory of homes for sale. At this time only 44 homes are active listings and this is less than half of what should be normal. Given this fact and insatiable demand for really nice homes, I look for great homes to continue to bid up in spite of the data presented here. This does have the potential to move the price needle much higher by year’s end. That would be unexpected, but still possible and most delightful since I live in Alamo.
Blackhawk which has been lagging the rest of the market has taken a giant leap forward in the first two months of the year compared with last year. The average sold price moved from $1,037,625 up to an amazing. $1,678,800 for a 62% increase in sold price. The size of homes sold increased by only 32%, so we are forced to acknowledge that nearly half the gain is real price appreciation. There are only 22 homes for sale in Blackhawk at this time, not very many.
Last month I mentioned Danville was fast approaching Alamo on the basis of price paid per square foot with the possibility of overtaking. With Danville sitting at $396 per square foot and Alamo at $386 for we can see that this has actually come to pass at least momentarily. It will be interesting to see how these two areas compare at the end of the year.
Diablo continues to gain momentum. Sixteen homes sold compared to three this time in 2013. Purchase price advanced from $1,877,083 to $2,021,402 up about 8% over last year and dollars paid per square foot advanced nicely as well. Eight homes are currently for sale in Diablo and the lowest priced listing stands at just under $3.3 million. This is one third more than the average price paid in Diablo so far this year. What happens moving forward will be interesting indeed.
I think the most notable information for the Danville Area Market contained here is the activity in Diablo and Blackhawk demonstrating an accelerating recovery for high end luxury homes. A healthy Luxury Home Market is vital to the completion of a total market recovery in our area as it is a strong signal that buyers and banks believe Real Estate to be a sound investment. I would like to think as confidence grows, we can expect to see high end home sale numbers increase.
Nancy and I have more than 500 email subscribers who receive this article in advance of publication. Just send me an email and we can add you to the list. email@example.com
Joe and Nancy Combs, The Combs Team, have a high degree of focus on Danville Real Estate and Alamo Real Estate 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.