Any way you slice this month’s statistics for Belmont home sales, seller’s really made out this October.
October is historically not a great month for home sales, but in recent years with warmer fall weather, it’s been possible to market homes well into the winter months.
Let’s look at the numbers for October 2015…
Belmont home sales (the number of homes sold), was down 24% year-over-year; down from 21 in 2014, to 16 in 2015. A 24% drop seems like a lot, until you realize only five less homes sold.
MEDIAN HOME PRICE
Belmont’s median home price rose 19% over last October, and was up considerably from the prior month of September.
The median home price in Belmont now stands at $1,546,500. To put that large number into perspective, it has only been surpassed twice before—both times earlier in this year—in May, and again last June. The all-time peak for Belmont’s home values occurred in June of 2015 when we reached a median home price of $1,629,000. Does this mean Belmont home values have peaked? Perhaps. The homes that closed escrow back in June sold for 5.3% more than now, and yet were 6.7% smaller. We’re going to temper that statement with the statistic that the summer price peak to October fall-off has occurred in six of the last eight years.
PRICE PER SQUARE FOOT
This is a check and balance against the median home price. If much larger homes sell during a given period, the median home price will typically yield a larger number as well, while the price per square feet which homes sell for will drop. It’s a quirky inverse relationship that manifests itself since larger homes tend to sell for less per square foot. This happens because land is not involved in the square foot equation, and can frequently account for up to 50% of a home’s value.
For example, homes which sold in October of last year, were 2,000 sqft in size, compare to 1,905 sqft this year. They sold for $707 per sqft as compared to $877 this October, while the lot sizes remained fairly constant. This means that the median price for homes went up in real dollars—not just that larger homes sold this October.
DAYS ON THE MARKET (DOM)
In both years, it took on average only 18 days to sell a home.
In 2014, 14% of Belmont home sellers had to lower their asking price. In 2015 that number dropped to .6%–just over one-half of one percent.
In 2014 66% of Belmont homes sold for more than the seller’s asking price—this October that number went up to 87%.
The number of homes which sold at the seller’s asking price represented 14% of all sales in 2014 and none in 2015, while the homes which sold under the asking price dropped from 20% in 2014, to only 13% in 2015.
Of the homes which sold in Belmont this October, the seller’s received 109.5% of their asking price, contrasted to last October when they received 107.5.
As you can see Belmont housing market fared extremely well this October.
We are now into the ninth year of economic recovery, and the fourth year of the median home price increasing steadily in Belmont. The question we are being asked by many buyers is “are we at the peak”? This uncertainty in the market can cause buyers to hesitate and sit on the sidelines to wait for the next downturn. If that happens it could be a self-fulfilling prophecy.
We’re not saying that we believe we’re there yet, but one thing is certain, home values are at an all-time high and we won’t stay there forever.
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 firstname.lastname@example.org.
You can find them on Facebook at https://www.facebook.com/Morganhomes and also find them on Twitter @ https://twitter.com/morganhomes
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.