Belmont continues its post lock down growth spurt with buyers eager to find larger homes to accommodate the new work-from-home scenario playing out in the Bay Area.
Here are the January numbers YOY as compared to 2020:
New Listings Up 89%
Closed Sales Up 180%
Average Days on Market Down 71%
Median Home Price Up 4.5%
Price Per Sq Ft Up 25.5%
All statistics point to strong housing growth 2021 thus far.
The size of homes selling in the two periods varied, accounting for the increase in the median home price.
In 2020, the average home that sold was 1,637 sq ft in size, while in 2021 that increase to 1,934—an increase of 297 sq ft. At the average price per square foot that homes sold for during that period, that would account for a median price increase of $297,000 alone, yet home prices only went up by ~$82,000 in 2021.
Notice that the price per square foot which homes sold for dropped in 2021 from 2020 by 6.4%, which is consistent as larger homes typically sell for less per square foot than their smaller counterparts.
We believe that low interest rates and the relative scarcity in housing has helped buoy home values despite the pandemic. Noting that the availability of new listings coming to market increased 89%, one might intuitively infer that more inventory would help balance the supply vs. demand dilemma plaguing buyers. But the strong 180% increase in sales has kept the months of available inventory to a meager .6, as compared to .4 in January of 2020—Months of Inventory being the time it would take to sell all of the existing inventory of homes at the current rate of sales.
Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 25 years of experience in helping sellers and buyers in their community. As Diamond recipients, Drew and Christine are ranked in the top 50 RE/MAX agents nationwide and the top 3 in Northern California. 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, insurance or legal advice, nor does it substitute for advice specific to your situation. Always consult an appropriate professional familiar with your scenario.