Pleasanton real estate update

November 5, 2009 by · Leave a Comment
Filed under: California, Home Searches, United States 

PleasantonOn September 17, 2009, reporter Robert Jordan of the Contra Costa Times featured a Pleasanton couple, Hin and Holly Liu, in his Silicon Valley Mercury News article about the economic turmoil and global recession.  The article focuses on the economic uncertainty of many of Pleasanton’s residents who are finding the economic environment even tougher for looking to purchase Pleasanton homes for sale.  In fact, with employers cutting wages and jobs being removed outright from several companies, many people and families are more concerned with maintaining sufficient cash flow to cover their needs.  Jordan believes that economic uncertainty of future jobs or wages might be a secondary explanation of why real estate in Pleasanton and several other similar communities has continued to suffer.  Hin Liu is quoted as saying, “During a poor economy there are good deals that would be nice to take advantage of. On the other hand you can’t take advantage because no matter how cheap it is, it still costs money.”

However, there is relief for some.  Robert B. Jones’ September 27, 2009 article in the Contra Costa times explained that “even with the significant downturn in the real estate market, some first-time homebuyers can find it difficult to come up with a down payment to buy a home. Others may find it difficult to qualify for a loan at all.”  For people interested in purchasing properties in the Bay Area, including Pleasanton real estate, there are programs that may make housing more affordable.  “The City of Pleasanton operates an affordable housing program that has resulted in the development of more than 120 affordable homes in 10 separate developments. The prices of these home have ranged from the low $100,000 to low $200,000 range.”  While this may be attractive for cash-strapped home buyers, these homes come with restrictions on resale and valuation.

James Pethokoukis wrote in his September 15, 2009, Reuters article that real estate in Pleasanton and other Bay Area communities is expected to begin revival by 2012 but also cautions that in the near-term, major rent declines will be in the San Francisco area and Manhattan, “as much as twenty percent.”  He also writes that “Despite falling cash flows and a drought of available financing for sales, owners are still hanging onto their properties as banks extend fixed-rate loans and floating rate loans remain manageable.”  Pethokoukis also warns of significant long-term trends that may impact commercial real estate valuation for a while.