ï»¿For Belmont homeowners there appears to be some stability creeping into the market. Home sales were brisk this Decemberâ€”double what they were in 2009. Those of you who may remember the home buyer tax credit was due to end in November last year which pulled a lot of buyers from December sales into Novemberâ€”all across the country. Not so much in Belmont since the qualifying purchase price had to be less than $800,000. Nevertheless we went back to compare previous December sales and they normally fall in the area of 12 for the month of December. One has to go back to 2005 when the housing market was red hot to see sales figures this high.
If we run we run down the usual list of market indicators, across the board there are some positive signs for homeowners.
*Highlighted homes were sold by Drew & Christine Morgan. Click on the graph for a full-sized image.
The time it took for a seller in Belmont to get a contract on their home was at 58, up only slightly from last yearâ€™s 50 and is pretty well mitigated with the doubling of sales.
Belmont sellers received 98.1% of their asking price in December 2010 as compared to 97.22 in December of 2009.
Half of the homes in December 2010 underwent price reductions for on average $58,000 before they sold. Last year 42% of sellers reduced their price by on average $69,000.
Of the 24 sales this last December two sold at the sellerâ€™s asking price, 16 sold for less than asking (by on average ($33,488), and six homes sold over the sellerâ€™s asking price by on average $17,183.
Homes which sold over asking did so on average in 26 days while homes which sold for less took more than 65 days to sell.*
MEDIAN SALE PRICE
If youâ€™ve followed this blog for any length of time youâ€™ve heard us talk about how deceiving the median price can be in any small sample size. Once again the median home price is a bit misleading as it has the median home price in Belmont in December of 2010 at $912,500. Thatâ€™s $102,750 (12.7%) more than last yearâ€™s $809,750.
So the answer lies somewhere in the numbers but ferreting out a more accurate sense of value is difficult. The size homes which sold in 2009 were on average 277 square feet smaller than the homes which sold in December of 2010, which accounts for most of the perceived median price increase. It just so happens that the size home you could get this year was also around 13% larger than last yearâ€”effectively whipping out any gain.
Using the year-end totals helps even out some of the distortion inherent in median price figures as the graph above demonstrates. If you take an average of each monthâ€™s median home price in Belmont for 2009, the average median home price was $847,604 and for 2010 it was $908,159â€”an increase of 7.1%. The average size of the home which sold in the two periods also increased from 1730 in 2009 to 2000 in 2020, a 15.6% increase. So was there any home appreciation in Belmont in 2010? Probably not. It appeared that in the first quarter of 2010 homes might increase in value but as quarters two and three came to a close (immediately following the conclusion of the homebuyer incentive programs) it was clear that would not be the case. The fourth quarter managed to salvage some of the losses in the two previous quarters as you shall probably hear soon n the media.
If you are considering selling your home this year be sure and contact us for a valuation of your home. We are experts in selling peninsula properties and our record of selling every home we list for sale is unparalleled in our industry.
Note: We throw out homes we know were re-listed or underwent huge price reductions only to sell for slightly higher than their greatly reduced price.
Disclaimer: The information contained in this newsletter 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.