Belmont homes sales in July are just the thing headlines are made of.
Last month the median home price in Belmont was $ 975,000 and July it dropped 9% to $885,000. That doesnâ€™t bode well for the positive home sales headlines, but rest assured the median size home that sold last month was also 18% larger. Comparing July sales this year to that of last July, in 2009 the median home price dropped 4.4%, but once again the size home which sold last July were 16% larger. What good does it do to report the median price when it varies from month to month so dramatically? Adjusting for the size home which sold can give us an indication of whether values are going up or down based on examining the price as adjusted for the size home selling. Clearly the values have gone up, even though the median price appears to have fallen.
The number of homes which sold did disappoint us. This July saw only 20 homes close escrow as opposed to 32 in June and 31 last July. Since the â€œsalesâ€ ,or homes which closed escrow in July were no doubt actually â€œsoldâ€ in June, we also looked at the number of pending sales in Julyâ€”homes which will close escrow in August. That stood at only 15 which is right in line with the last two yearsâ€™ performance.
The time it took to sell a home this July was 27 days, down from 46 in June and 34 last July. Thatâ€™s a good number to track to see where the momentum may be headed.
Sellers will be happy to note that on average they received $35,000 over their asking price with the average seller getting over 100%. Only four of the homes lowered their asking priceâ€”with one caveat these numbers are slightly skewed because one home received an offer $100,000 over their asking price. Nine sellers still accepted an offer less than askingâ€”on average $23,000 less, with six sellers receiving what they were asking.
Inventory levels remain high for this time of year. The number of available homes for sale is at 71; up from Juneâ€™s 66 and last Julyâ€™s 57. More supply would typically put downward pressure on prices, and 71 homes for sale his higher than normal. However, the increase is still well within healthy standards. The months of inventoryâ€”the time it would talk to deplete the inventory of homes for sale at the current rate they are sellingâ€”is at 3.7, a far cry from the national rate of nine months. This was helped by fewer home being listed for sale in Julyâ€”only 27.
We attribute the increased inventory to several factors. Some sellers may need to sell their home and theyâ€™ve waited as long as they can, and/or sellers want to move and take advantage of lower interest rates on a move-up or retirement home. In any case more sellers are selling and some buyers are buying.
If you are thinking of selling your home this year the window of opportunity is upon us. The second wave buying season gets into full swing just after Labor Day. That gives us just enough time to get your home ready to show at its best. Give us a call for an interview if you are in the mood for a move.