Pleasanton Home Prices Among The Fastest-Falling In USA: Study

PLEASANTON, CA — Pleasanton home prices are falling faster than almost anywhere in the United States, according to a study from financial planning firm SmartAsset.

SmartAsset analyzed Zillow's Home Value Index, tracking the fluctuation in values for single-family homes, condos, and co-ops from May 2022 to May 2023.

This analysis placed Pleasanton seventh in the nation for the swiftest drop in value. The average home price dropped from $1,762,153 in May 2022 to $1,548,736 in May 2023, a change of over 12 percent.

Next door, Dublin was ranked first in the entire country, with a whopping 15.4 percent decline in typical home value, shedding nearly $230,000 from $1,494,270 in May 2022 to $1,264,564 in May 2023.

Livermore came in at number 15, with prices dropping $127,170, or 10.67 percent, and San Ramon ranked 17, with prices declining $170,590, or 10.02 percent.

Overall, researchers found Bay Area homes experienced the most dramatic drops in the nation, claiming the top four spots on the list. Dublin comfortably led the pack while San Francisco was second, where values tumbled 13.3 percent.

See here for the top 18.

The changes were less pronounced in SoCal, but several cities still posted substantial drop-offs. The Southland's biggest declines were seen in Santa Monica, dipping 7 percent and ranking 41st overall, followed by Simi Valley and Burbank at 6.2 percent, just outside the top 50.

Here Are The U.S. Cities Where Home Prices Are Cooling Most

1. Dublin, CA (-15.37%)
2. San Francisco, CA (-13.3%)
3. Palo Alto, CA (-12.82%)
4. Fremont, CA (-12.77%)
5. Kirkland, WA (-12.37%)
6. Oakland, CA (-12.22%)
7. Pleasanton, CA (-12.11%)
8. San Mateo, CA (-12.01%)
9. Bellevue, WA (-11.99%)
10. Redmond, WA (-11.61%)

While the lower price point is welcome news for prospective buyers and a nightmare for owners, experts say the cooldown isn't a good sign for the market, noting that overall housing inventory remains tight. One expert told Bay City News that in some areas the declines may be linked more to lower demand as people leave for places with a lower cost of living after years of ballooning prices left homes out of reach.

In the Bay Area, data from the California Association of Realtors found the median price for a single-family home surged 36 percent between 2020 and 2022. The SmartAsset report noted that, despite recent declines, home prices in places like Palo Alto remain "atypically expensive."

"We prefer to see housing prices go down because of supply increases," Corey Smith, executive director of San Francisco's Housing Action Coalition, told Bay City News. "We need to be trying to build as much housing as we can so the supply increases are ultimately the things that drive down prices."

There are some signs that things may be starting to move in that direction.

In May, the state Department of Finance said new housing growth reached its highest level since 2008. The same report found that Alameda County — home to many of the cities with significant price drops — had some of the highest housing growth in California.

Smith told Bay City News he was optimistic about the coming years, citing the state's growing focus on affordable housing and recent legislative efforts to streamline new affordable projects, which took effect last month.

Patch editor Lucas Combos and Bay City News contributed to this report.