Belmont Home Prices in March Are Off the Charts Hitting an All-Time High Water Mark
Just when you thought it was safe to go back in the water—even if it was just to dip in your toe—wham—the market showed its full force and effect in March’s numbers.
Dropped 32% from March 2013. There were only 15 sales this year as compared to 22 last March.
Typically when we see fewer homes sell year-over-year, it’s because there are fewer homes to sell OR the market is changing. Looking at the inventory of homes for sale, this March there were 16 homes for sale and last March there were 14. There were 21 new listings last year and 22 this March.
If inventory levels are actually higher, but sales are down what’s going in?
The median price skyrocketed year-over-year from $1,044,000 in 2013 to $1,328,888—a 27% increase in one year. The previous high median home price in Belmont was in September of 2013 when it stood for one month at $1,239,444–as one can see that’s a substantial increase and might easily put a damper on sales as fewer people can afford to buy the median price home.
Did larger homes sell in 2014 artificially buoying the median home price? Not at all. In fact, the size of the homes which sold in March were a tad but smaller than in 2013. The median price per square foot tells the same story as it rose 29% over last year to $746.00 per square foot.
In 2013 two homes offered price reductions and while four homes sold under the asking price, three sold at asking and 15 sold for more. This year none of the sellers had to lower their asking price and all but one home (listed by an out-of-area agent not familiar with Belmont values apparently) sold for less—every other home sold over the seller’s asking price.
How much over asking? This March sellers received on average 115% of their asking price compared to 108% last year—almost double the overbid amounts in just one year. Has competition ratcheted up a notch?
DAYS ON THE MARKET [DOM]
The time it took to sell a home in March dropped from on average 27 days last year to 12 in 2014.
When you hear the term unsustainable this is what they are referring to. But Belmont is not unlike other towns further south which have been either suffering from this affliction or enjoying the reward of appreciation (depending on your perspective)—for several years now. Palo Alto leads the appreciation pack and when prices get too out of balance buyers migrate to Menlo Park—then San Carlos—then Belmont—then San Mateo.
At some point the rate of appreciation will slow if for no other reason than buyers can no longer afford to buy the median price home. But in reality, nomadic instincts will kick in as buyers graze further north in search of one of our most basic needs—shelter.
SELLERS—if you’ve been waiting for the right moment to strike a “For Sale” sign in your yard—we may have reached the pinnacle of opportunity.
Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years’ experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at email@example.com.
The information contained in this article is educational and intended for informational purposes only. It does not constitute real estate, tax or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.
Drew & Christine Morgan did not necessarily participate in these sales.