We’ve been swamped with business this year and with rolling out our new web page to boot we are just now able to settle down and look at February’s homes sale price figures for Belmont. Believe me, we’re dutifully aware that March’s numbers are available soon and we promise to deliver them in a more timely manner.
(Click image for a full size picture)
MEDIAN PRICE
Once again the median price in Belmont was, in practicality, unchanged. Those of you who follow our posts know we endeavor to portray the most accurate market snapshot as possible. In doing so, we not only report the median price statistic as per our MLS system, but we delve deeper to see if larger or smaller homes sold which can dramatically change the results in a small market sample, such as Belmont, which has relatively few sales each month.
Even though the median price dropped from January’s $850,000 to $800,000 in February (5.9%), the size homes which sold were significantly, (8%) smaller.
Year over the year, the median price home sold in Belmont went from $714,500, last February, to today’s February price of $800,000—an increase of 12% with an increase of the size home sold in the two periods of 14%. Viewed from another perspective, the median size home dropped about 2% year over year in the same periods.
DOM
Homes are still staying on the market for a longer than usual time. This February it to 81 days to sell the average home as compared to 78 days last year. The first quarter of the year includes many homes left over from the winter months and we expect this time (DOM) to drop in the spring selling season, as it typically does.
SALES
Ten homes sold this February as compared to just six last year. Of the ten sold, two sold over asking, two sold at their asking price and six sold for less than asking.
In perspective—
The local market continues to be riding a rollercoaster fueled by uncertain feelings on the part of many buyers and sellers. Some buyers are jumping back into the market with both feet and offering sellers thousands of dollars over the asking price for highly desirable properties, and others are sitting on the sideline thinking there could be another double dip.
March’s numbers are due out in a few days which we predict will show more of the same, with the number of sales increasing and the median price continuing its unremarkable recovery.
I bought a home in belmont last year summer, I tried to refinance and the appraisal doesn’t pass through, I was a bit surprised as I put some money in renovation too. Do you think the belmont market is declining still?
Hi CB—thanks for the question.
Your dilemma is shared by thousands of others in cities all around the country. Not just because prices may still be falling, but because the appraisal process has changed dramatically. Lenders are removed from the process of choosing an appraiser who is familiar with your area. Lenders are also prohibited from using any influence they have to request an appraiser reach a certain value. While these Congressional actions seem like innocuous steps that would most certainly protect the consumer, an unwanted effect is that appraisers have little incentive to come in at what most might feel is a reasonable value. In fact, they actually have in disincentive to do so; the lower the appraisal the less likelihood of negative consequence to the appraiser should the appraisal come under scrutiny by H.U.D.
Furthermore, if appraisers feel the value could be subject to future price declines, they tend to err on the side of caution, which in your case means a value under what you purchased your home for.
Are prices still declining in Belmont? Slightly, but our analysis is a month-to-month snap shot of a small market sample, subject to wild fluctuations and seasonal buying trends which invariably push values up one month, and down another.
I’m surprised you are already refinancing. Perhaps you could get another appraisal or move to another lender?
Hope this helped? Chris
I refinance because the rate is much lower now as compared to the one I got last year, I do not dare to try another appraisal again because everytime it costs me $500 just to do that, with no guarantee even though I totally disagree with the appraisal report they did. The appraisal report does not consider the fact that some houses are on a much busy main street or beside the school, but the bank said their appraisal was final, there was no negotiation or trying to do another one from a different person. With not many houses for sale lately, I think they will do their appraisal based on those few houses again and will have the same result.
Thanks for posting the report. I read your reply to CB, thanks for helping Chris. Keep it up.
Paula M
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