Well itâ€™s another one of those tricky months where the numbers tell an inaccurate story when it comes to the value of Belmont homes.
(Click on the graphic for a full size view)
MEDIAN HOME PRICE
Looking at the raw numbers, the median home value in Belmont dropped from $912,500 last November to $784,000 this year. Thatâ€™s a whopping 14% decrease but waitâ€”letâ€™s look at what really happened.
This November Belmont had three short sales which greatly impacted the results. More importantly was that the majority of the homes sold were much smaller than they were last year. Larger homes sell for less per square foot (since land is a constant). Therefore if many smaller homes sell in a given period the price per square foot statistic will rise while the median home price will fall. Watch for this inversely proportional relationship to guess when there might be more to the story than meets the eye.
The median size Belmont home which sold in 2008 was 2095 Sq. Ft. and only 1568 in 2009. The difference of 342 square feet multiplied by the smaller price per square foot median of $488 last year means the adjusted median home value in Belmont this November would be $950,000, or an increase of 4%.
NUMBER OF SALES
The most impressive statistic is the number of sales which at 22 almost tripled from 2008. That speaks volumes as to consumer confidence in the local market. If sales were up because values were dramatically depressed, that would not be nearly as impressive. Of course the artificial interest rates people are enjoying right now are no doubt a contributing factor in the number of buyers who see an opportunity to lock in a home with a 30 year mortgage for under 5%–better move soon if thatâ€™s an important factor in your home buying decision.
The time it took to sell a home is virtually unchanged but itâ€™s interesting to note, after much analysis, that the actual DOM this November was 121, not 39. This is because several of the short sales which took FOREVER to sell (usually because the banks are really bad at getting around to looking at offers) skewed the numbers (see the lower row of adjusted sales).
The percent a seller received of asking remains as a statistic, virtually unchanged; however this number varies dramatically from home to home.
Whatâ€™s our take on this?
The Belmont market appears to be stabilizing in a comfort zone where buyers can still get reasonable deals and most sellers still have ample equity.
Call today if you are thinking of a move in 2010!