A significant issue in Alamo is lack of inventory of homes for sale. At this time only 24 homes (6 less than last year) are active listings and this is less than 1/4 of what might be considered normal. Average price is up 21% over last year on a home that is 512 sq. ft. larger than at this time last year. Dollars paid per square foot are down 3% in the first two months of 2016 compared to 2015. An increasing number of larger homes selling in Alamo is causing a bit of decline in average dollars paid per square foot, however this is a sign of market strength, not weakness, as evidenced in the average sales price increase.
Blackhawk sales stand at 17 which is 3 more than during the same time last year. Like Alamo, price paid for the average home is significantly more this year than last year and it increased by 29%. The average size of the home sold is nearly 1100 feet larger than homes sold during this time period last year. Dollars paid per square foot declined from $441 to $421. Again, this should not be considered as a negative in light of the average price of the home moving from $1,547,823 all the way up to $2,001,559.
Danville sales declined from 76 to 59 units for a decline of 32%. This decline is likely caused by very low inventory numbers. As of this writing, only 54 homes are currently for listed for sale. Contrast this number to 59 properties that have sold since the first of the year and we can see that Danville has less than 2 months inventory on hand. Average selling price in Danville is up 7.2 %. Unlike Alamo and Blackhawk, the average size of the homes in Danville has remained constant at 2333 square feet and the price per square foot increased significantly, up11%.
Diablo is interesting in that it is a very small market and only one home has sold this year compared to last year when a total of 5 homes sold. Given the lack of sales data for 2016 it’s not as useful to compare the two time periods. That said, the current comparison looks pretty similar to Alamo and Blackhawk except that dollars paid per square foot actually increased. Of note in Diablo is that there are two pending sales and 5 properties currently listed for sale. Their dollar per square foot price ranges from a low of $406 to a high of $876 with an average of $631. If the average price is obtained, this will be strongly positive for Diablo.
While the numbers presented here are mixed, both positive and negative, I don’t see anything in these early data to suggest anything other than a very good year in the Danville Area Real Estate Market. Days on market increased throughout and that may be simply explained by weather. As I have said in more than one of these articles, “It isn’t likely that we will be enjoying these incredible rates of growth forever.” Eventually supply and demand will come into balance and price appreciation will slow down. When? We can only guess.