The Sycamore area of Danville has experienced a slowdown in line with the rest of the town
Currently there are 5 active listings and 1 pending. The average days on market for the active listings is 97 with the longest on market for 266 days. The listing that is pending was sold in 6 days. Because of the low activity in the Sycamore area it is not beneficial to look at inventory absorption rate but more accurate to look at each home individually.
Area Desirability
Sycamore has always been a desireable neighborhood with the town of Danville. Much like the Greenbrook area which is just south of Sycamore Valley Blvd, the Sycamore area offers tradition 1970 ranch style and 2 story homes. While most of these homes are original many have had the kitchens and master baths updated. The easy freeway access and access to San Ramon Valley schools is a key draw into this neighborhood.
Economic impact
In general most Danville homes have faired well in spite of the national economic slowdown. While all areas have seen the average days on market balloon, the average sales price has seen only a modest 6% reduction from this same time last year. Other areas such as Westside Danville still remain highly desireable but out of reach for most buyers. Of late, the biggest impact on home sales in this area has been a lack of money from the lenders. We have found that many previously approved buyers are know finding it difficult to secure a loan. This situation has served to reduce the number of buyers in the market and will cause inventory to rise. Common economic principles tell us that the prises should drop as a result, I do expect a modest move down but not significant.
The market is changing in the Greenbrook area of Danville
There are currently 14 active listings in this area with 2 pending listings. This moves the inventory absorption rate from 5 months 2 weeks ago to 7 months. This equates to a buyers market.
Reasons for the changes
What we are finding is that the homes are still desireable in this area with buyers offering, but the current lending market has changed the qualification process to a point where only the most qualified buyers are able to get loans. For example, I have a client who was preapproved through Wells Fargo. We found a house submitted an offer performed inspections and the appraisal and were ready to lift contingencies when the underwriter of the loan pulled the loan and denied the request. This is happening quite frequently these days and has made the purchase of homes much more difficult.
Greenbrook compared to other Danville locations
The Greenbrook market is still a highly desireable destination for home buyers and is holding its own compared to other areas within Danville. Like the Westside Danville market, Greenbrook offers great schools within walking distance, easy freeway access, and loads of walking trails and open space. The differnce being in price. The Westside Danville market is considerably more expensive. The difference in price is due to the proximity to downtown Danville from the homes on the Westside. Compared to the Sycamore
area Greenbrook homes are also doing well. The Sycamore and Greenbrook areas are very comparable in all regards. The difference being the homes styles are slightly different and the proximity to schools.
The Westside Danville home sale market has been affected.
Generally in the Westside of Danville homes sell very quickly and usually with multiple offers. Over the past 2 years we have seen the average days on market climb steadily to over 6 months. However during this same period the list price of these homes has remained steady with only a modest 6% drop in average sales price.
The market today
Unlike Danville as a whole, the real estate market for listings in Westside Danville has an average list price of $1,500,00 with an inventory absorption rate of 12 months. As of this writing there are 22 active listings. Many of these listings have been on the market for greater than 5 months with only minimal price reductions. The homes that have sold or are pending in this area are either fixers that have been priced accordingly, or remodeled/rebuilt homes that have the latest amenities.
Bottom Line
In this area the sellers are willing to hold tight to their price and wait for an offer. When an offer is recieved I have found that sellers in the Westside of Danville will negotiate hard and not drop below their desires bottom line. The buyers are always looking for a deal and will not go above their top end price. The result has been a stalemate with the buyers eventually walking and going to the Greenbrook, Sycamore, or Westside Alamo 
homes.
Homes sales in Westside Alamo have held steady
In the Westside Alamo real estate market the sale of homes has remained fairly steady in spite of the national economic downturn. While the average home price has dropped over the last few years, it has not been by much and the inventory absorption rate has remained at a steady 4-5 months.
The buyer profile for Westside Alamo
In general people buying in this area are professional people who either work from home or commute into Oakland, Silicon Valley, or San Francisco. They are people who are concerned about quality of life issues for their families and want the best schools for their children. What we are finding is that the buyers for homes in Westside Alamo are Senior executive level and have little to no issue with price. These buyers usually narrow their focus to either Westside Alamo or Westside Danville. Many of them choose Alamo due to the larger lots and larger more upgraded homes.
The current economic sitiuation has not affected the sales price for homes in this area very much. In fact prices have been fairly flat over the last 2 years. However, time on market has lengthened and buyers are looking to negotiate more than in the past.
Projection for Westside Alamo real estate
I expect that this market will continue to remain flat with inventory levels dropping over the next few months. Prices should hold at their current levels for the forseeable future.
Over the past 2 years the Danville real estate market has experienced a slight decline in home values.
At the same time last year, the average sales prices for homes sold in Danville were 6% higher than they are today. While Danville has been holding it’s own quite well during the economic downturn there have been some adjustments.
In general the Danville market is considered neutral as a whole with the inventory absorption rate mving between 4 and 5 months. However, there are some neighborhoods in Danville that have been experiencing a dramatic slowdown with absorption levels greater than 12 months. In particular the Westside Danville market has slowed way down. This once golden area has seen the average days on market climb to over 100. Another area seeing a slowdown has been the Sycamore area. There have been fewer homes on the market but these homes have also been sitting for quite awhile. The irony here is prices usually fall when homes are on the market for awhile. We are not seeing this happen in either Westside Danville or Sycamore. Other areas have seen dramatic reductions in price but, due to the nature of the sellers in these areas, we are seeing the list price hold.
Other Danville areas
The Greenbrook
area has basically mirrored Danville in terms of inventory absorption rate. These homes are usually less expensive than those in the Westside Danville and Sycamore markets and buyers are seeing value.
To date information:
The current real estate inventory within the Sycamore area of Danville consists of 5 active listings and 1 pending sale. The average price for the active listings is $977,500 with an average price per square foot of $399. The average days on market is 93. The pending listing is priced at $1,350,000 which is $447 per square foot and was on the market for 6 days
The aforementioned statistics while not being statistically significant do point to the fact that houses are selling quickly in this market if they look good, are in a good location, and are priced aggressively. Sellers that are not serious about selling in terms of pricing and condition will become frustrated due to the lack of activity. What we are finding is that the buyers have become extremely selective and are looking for value. Especially in the more desireable neighborhoods where you typically have homes that are 30-60 years old. Buyers will weigh the desireability of location against home size and condition and of late have been willing to pass on the previously more desireably places to live.
Current statistics
Currently there are 14 active listings in the Greenbrook area of Danville which includes Greenbrook, Danville Station, and Shadow hills. The average price for the active listings is $908,530 with an average price per square foot of $392. The average days on market is 97. There are 3 pending listings that have an average price per square foot of $412 with an average list price of $949,000. The average days on market for these pending listings is 91. The gives us an absorption rate of 4.5 months
Whats happening:
In the Greenbrook area we are seeing buyers who normally would go to Westside Danville opt for a lower price per square foot in Greenbrook. In general the Greenbrook market closely mirrors the Danville market on whole. The homes that are priced well and are in good shape are selling. The buyers are looking for value and expecting a clean house without need of major updating.
In general the market in Danville is relatively stable with prices dropping about 6% from this same time last year. We do expect inventory of non bank owned property to continue to drop as the holiday season approaches.
There are 19 active homes on the market within the Westside of Danville. The average price on these homes is $1,621,000 with an average price per square foot of $533. The average days on market is 74. There are 7 pending listings with and average sales price of $1,006,000 and an average price per square foot of $410. The average days on market for these homes is 35 days. This means that the absorption rate is 3 months.
Market analysis:
An absorption rate of 3 months is considered a slight sellers market which is really not the case in the Westside of Danville. In general the homes priced under $500 per square foot are selling and those priced over $500 per square foot are sitting. Many sellers are still expecting a quick turnaround in the market or a buyer that will pay their asking price. What we ae finding is that people are loking at all of the homes and discounting. There is a strong desire to be in the Westside of Danville but with prices over $500 per square foot many buyers are opting to buy in Greenbrook, Sycamore, or the newer houses in the east part of Danville. Also, the home sales in West Alamo have been good because people are looking at the overall picture in terms of price per square foot and the amount of property you get for the money.
Information on Danville:
For more information about the Danville area go the the Chamber website, The activity guide for Danville, or the Discover Danville websites
Current activity
There are 26 active listings in Westside Alamo. The average price of these listings are $2,043,000 with an average price per square foot of $593. The average days on market is 111. There are 5 pending listings. The average price for these pending homes is $1,489,000 with and average price per square foot of $495. The average days on market is 68. This gives us an absorption rate of 5 months
Market analysis:
The current market is being driven by the high demand for homes in Alamo offset by the current home mortgage market. Much like Danville to the south, the West Alamo real estate market continues to be strong and those sellers willing to be aggressive with pricing are sometimes seeing multiple offers.
The curent activity is as follows:
In Danville there are currently 192 active listings for detached homes. The average price for these homes is $1,404,000 with an average price per square foot of $432and an average days on market of 84. There are 50 pending listings. The average list price for these pending listings is $1,050,000 with an average price per square foot of $374 and an average days on market of 59. The absorption rate is at 4 months which is down from last months rate of 5 months
Market dynamics
The market in Danville continues to be strong with prices dropping a modest 6% from this same time last year. Many areas within Danville are doing well and are responsible for the relatively short inventory levels. Areas like Greenbrook and Sycamore are doing well along with the newer homes in the east part of the town. The area west of the 680 freeway (Westside Danville) have seen a slowdown in sales and an absorption rate of 12 months.
The effect of the mortgage markets:
Currently the biggest impediment to purchasing a home is the uncertainty with wall street and the home mortgage markets. Previously loan approved buyers are now finding themseles halfway through escrow when their loan application is denied. Also, many buyers are now opting to wait until after the election in the hopes that this will stablize the economy. My recommendation is to go through the loan approval process and when you find the right home, buy it. There are some absolute steals out there now and the savy buyer will look back in 5 years and say that this was the best thing that has happened to them.
