Cell Phone Photos Should Be Banned

If a picture is worth a thousand words, then what does an awful picture say?

Putting your home’s best foot forward is of paramount importance to get the positive attention you want when selling your home.

Nikon-Cameras
If you stop and think about the role that advertising plays in our culture, one can easily see why it’s important that your home’s advertising is top notch—after all, there’s a reason the top 200 advertisers in the United States collectively, spent a record $137.8 billion on advertising in 2014, up 2% year on year, according to Ad Age’s annual “200 Leading National Advertisers” report, advertising works!

Let’s take just one aspect of the marketing for your home—the photos.

The idea behind photographs in on-line marketing, is to entice potential buyers to come and physically see your home. The photos should be of high quality and resolution and be taken by a professional. The days of using your own camera are gone. So, should the use of cell phones, yet we still see this atrocious practice employed even in our sophisticated market.

The old saying, “If you don’t have anything nice to say, don’t say anything at all”, applies equally to photography. Remember, photos are a vehicle to get people to visit your home, not scare them away. Too much information can be as detrimental as none at all. A professional photographer typically knows the difference, but not always, so we’re still vigilant about filtering out only the shots that best represent a home.

We’ve seen some amazing work by seasoned agents who should clearly know better.

This is one of our favorites. It was on the market for 21 days and yet the agents never took the time to straighten the photo.90 Degree Home

 

 

 

 

 

 

In this photo, we can see the agent never even visited the home. They simply took a screen shot of a Google Map (the directional arrow is clearly visible in the photo).

Screen Shot 2017-01-23 at 11.39.00 AM

 

 

 

 

 

 

But there are less obvious infractions, like crooked photos, over or under exposed shots and even small minutia like leaving a toilet seat up when shooting the bathroom.

Agent in Mirror

Here’s a home where the agent
took her own photos. Not only were all of them crooked, in this photo of the bathroom she can be seen standing in the mirror with a washed -out flash.

 

When Photoshop Works Wonders3344 El Sobrante

Let’s face it, the weather doesn’t always cooperate on the day of a shoot. For this home in San Mateo we recently sold, the day came for photographs and the sky was ominously dark. The driveway also had streaks from rain water running down to the street. Here you can see what a few minutes of Photoshop can do to remedy a problem.

 

When interviewing an agent to sell your home, it’s best to see examples of their work. Avoid the dangers of Adverse Selection and asymmetric information by doing an on-line search for their work in its entirety, not just the examples they’re willing to share.

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA. with more than 20 years of experience in helping sellers and buyers in their community. They may be reached at (650) 508.1441 or emailed at info@morganhomes.com.

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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.

 

Don’t Wait—Beat the Crowds and Buy This Winter

Don’t Wait—Beat the Crowds and Buy This Winter

snow-globe-house

We’ve been saying this for years, the best time to buy a home is when it’s not the best time to sell–and the statistics back us up. But we’re not telling you anything you shouldn’t already know. However, there’s even more compelling reasons this year, with the much ballyhooed talk about interest rate hikes.

Now that the U.S. has regained its job-creation mojo, as the October employment report showed, the demand for housing is only going to grow.

After all, when people have jobs they can break off and form new households—ditching the roommates behind or finally moving out of Mom and Dad’s basement—and that’s what fundamentally drives home purchases.

Most of the households created over the past two years have been renting households, but based on U.S. Census data for the third quarter of this year, it appears that homeownership has started to recover.

This especially makes sense now that it is cheaper to own than rent in more than three-quarters of the counties in the U.S. And it’s not getting better— rents are rising year over year at twice the pace of listing prices. Meanwhile, mortgage rates remain at near record lows but appear poised to increase over the next year. And home prices are rising, too.

So if you qualify for a mortgage and have the funds for a down payment and closing costs—and if you intend to live in a home long enough to cover the transaction costs of buying and selling—you will be better off financially if you buy as soon as you can. After all, if you are tired of your current home now, you won’t feel better about it in six months.

The top factors driving home shoppers this summer were pent-up demand and recognition of favorable mortgage rates and home prices. These drivers will likely remain well into next year.

Yet demand for housing is extremely seasonal. In most markets in the country, we are conditioned to believe that we should buy homes in the spring and summer. So come each October, plans to purchase shift to the spring. While the school calendar and weather do influence the ideal time to move, many buyers would benefit from buying this fall and winter rather than waiting until next spring.

In October, the percentage of would-be buyers on realtor.com® saying that they intend to buy in seven to 12 months was the highest it has been all year and represented the largest time frame for purchase. Likewise, October produced the lowest percentage of would-be buyers saying they intend to buy in the next three months.

In other words, people’s stated plans point to a very strong spring for home sales. Great, right? But here’s the problem: Inventory isn’t likely to be higher in March and April than it is now. And while inventory should grow in late spring and into summer, it won’t grow as fast as the seasonal demand.

So, if you are ready, consider getting in the market now instead of early spring. You will have more choices and less competition, and you can lock in today’s rates rather than risk rates being 25 to 50 basis points higher. (A basis point is 0.01 percentage point.)

A 50 basis-point increase in rates (for example, from 4.05% to 4.55%) would cause monthly payments to be 6% higher. And that increase would not only affect your monthly cash flow but could also affect your ability to qualify.

So if you are considering buying a home this spring, it’s worth exploring the inventory now and reaching out to a local Realtor®. A new home could be the best gift you give yourself and your family this holiday season.

And if you are considering a move, we’re ready to help you make a good decision.

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 info@morganhomes.com.

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.

Belmont Homes Hit a New High

Notre Dame ExteriorBelmont homes hit a new high as our Best of Tour report for this week is being supplanted by the second highest price obtained (per square foot) for a home in Belmont—the highest being recorded less than a month ago in Sterling Downs.

One could argue that since the Sterling Downs home at 1,010 sqft was so small the price per square foot $1,262 record should be bested by the home on Notre Dame, a two bedroom two bath home of a modest 1,340 square feet in size. The lot is an unremarkable 5,340 square feet—just slightly above average. The home itself, a rather undistinguished but well-appointed home, yet nothing stands out as deserving the almost $1,200 dollar per square foot they received—nothing like solid gold appliances or whatever could possibly impress one enough to pay the $501,000 OVER the asking price (46% over asking). It was listed for $1,099,000 and sold for $1,600,000 in eight days.

Notre Dame YardBut then when we saw that the selling agent (representing the buyer) was from Woodside—one of the toniest town in America where homes have sold as high as $5,500 per square foot— it made more sense and it stands to reason that an out-of-area agent just might confuse the values in Woodside with that of Belmont.

 

Disclaimer:

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 info@morganhomes.com.

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. We did NOT sell this home.

Best of Tour 2.10.2015

BEST OF TOUR

Not to be confused with the Board of REALTORS “Best of Tour” award whereby agents try and coax or pressure their colleagues into signing a petition proclaiming their home the “Best of Tour”, our’s is based upon our personal impression after seeing all of the homes on tour and reporting back to you.

Today’s Best of Tour there were three stand outs:

Belmont:

Belmont’s inventory is still low but this one perked us up. A home on Belmont’s west side under $1,000,000? Ready to move in, this home is great for a first-time buyer tired of renting.

2014 Monroe Avenue , Belmont 94002   Status:  Active  Monroe

County:                San Mateo

Area:     362 – Belmont Country Club Etc. List Price:             $899,000

Beds:     2

Baths (F/P):        1

Apprx.Sqft:         1,150 SqFt (Tax)

Apprx Lot:           4,000 SqFt (Tax)

 

San Mateo:

904 Murphy Drive, San Mateo 94402       Status:  Active      Murphy Drive

County:                San Mateo                          Price:     $2,488,000           List:        02/06/2015

Class:     Res. Single Family

Beds:     5

Baths (F/P):        4 (3/1)

Apprx. Sqft:        3,910 SqFt

Apprx Lot:           11,970 SqFt

This home underscores why looks can be deceiving. From the outside it looks like just another track home but once inside it is anything but ordinary. From the open floor plan and expansive rooms to the wonderful rear yard. Truly a great find!

If that one is above your comfort zone there’s a home on the water in San Mateo which has been recently upgraded. Best part—you can water ski right from your back yard.

1765 Lake Street , San Mateo 94403         Status:  Active            Lake

County:                San Mateo          Orig Price:           $1,288,000           Original:               02/05/2015

Area:     413 – Parkside    List Price:             $1,288,000 MLS #:            ML81449598

Beds:     4

Baths (F/P):        3

Apprx.Sqft:         1,960 SqFt (Tax)

Apprx Lot:           8,280 SqFt (Tax)

 

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 info@morganhomes.com.

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.

Home Values Peaked?

Have Belmont home values we peaked for the year?

Our spring housing market always makes for exciting times—it sort of sets the pace for the year.

Typically we see prices jump the most in the spring and level off around summer. Despite the rumblings that our market is cooling off, this year appears to be no different than we’ve experienced in past trends. Any perceived “cooling off” is expressed in the rate of increases waning, and compounded by seasonal fluctuations.

In the graph below we plotted the percent a seller received of their initial asking price since 2012 when the market rebound began in earnest. This is a good indicator of the level of competition in the market. Notice how our local market competition increases most in the spring and price increases follow suit. Why is that? We have a few intrinsic theories and if you’d like the inside scoop here are our musings.

! Belmont Peaks

 

 

 

 

 

 

 

 

 

 
SCHOOLS

First there’s the school enrollment calendar. In Belmont that opens in February and ends in June. Of course getting your child into your preferred school means hitting the initial enrollment period—or at least the second one. We believe the school enrollment calendar tends to influence a buyers decision to act quickly in the spring market. HINT: You cannot enroll your child in the Belmont/Redwood Shores School District without proof of residency.

School Enrollment Period Belmont

 

 

 

 

WEATHER

Another influencing factors is that the weather improves in the spring. Buyers and sellers come out of winter hibernation and the better the weather the sooner they do so. And more buyers means more competition while inventory remains low until school ends in June. Over 65% of all new listings are listed in quarters 2&3—April through September.

COMPETITIVE SPIRIT

Let’s face it, not only are home buyers competing for great jobs they compete at the home buying game as well—and they hate to lose.

Indulge us for a moment—Imagine there are six horses racing that are competing for first place in a race. But after each race the 1st place winner must retire. This leaves the second place horse the favorite in the next race, and all things being equal he now takes 1st place and then also retires—but the finish times are getting slower. Now the 3rd place horse in the first race, is the 1st place horse in the third race but he’s clearly not as fast as the first horse was in the first race—but he still wins—and retires.

You see the home buying and bidding process follows a lot along these lines. The most aggressive bidders typically wins and get their home—now they’re out of the competition. The buyer who came in second now steps to the plate and secures the next home—and he probably bids even more than he bid the last time when he lost. This pushes the prices up and eliminates the aggressive bidders. By summer the remaining bidders are typically far less aggressive and more risk adverse so they bid less and homes close for a smaller amount over the seller’s asking price.

But that begs the question, “Why not just wait until after the bidding wars wane to put in an offer?”

Because prices are going up about $500 q day and the longer one waits the more that same house will cost. Note that as seen in the above graph, the percent a seller receives is greater in the spring while the median home price does not follow any similar plot—except up.

We’ve seen this year in and year out and yet each year we hear people deliberating on the perceived slowdown as a shift in the market, rather than a well-defined pattern repeating itself.

Click here to see our analysis for May of 2014 where we compare it to April’s numbers and every May going back to 2012 when the market took a marked uptick—is the housing market slowing down? See for yourself…

 

Disclaimer:

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 info@morganhomes.com.

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.

 

Belmont Home Values–Are They Sustainable in 2014?

Belmont Home Values for 2013–A Market Re-Cap

This year-end summary is where we bring you the re-cap for Belmont Home Sales. To say the least, Belmont sellers had a good year. After watching their home values drop for five years in a row (until 2011), they finally enjoyed some relief in 2012 and in 2013 as Belmont home prices reached a new high never seen before.

Here’s how it all stacked up.

This graph shows the median price in Belmont from 2012 through 2013. Many postulate about whether the market has returned to its previous high. To answer that, we looked at the median home trend in Belmont going back to 1998. Belmont’s median home price was over the million dollar mark for every month last year—save March. The closest we came to that was back in 2007 when we hit a period over the million dollar mark only twice. In many areas of the east bay and the country as a whole, they are still shy of the highs seen in 2006.

Belmont Median Price Trend 1012-2013

MEDIAN HOME PRICE

The median home price in Belmont last year, as reported by the Multiple Listing Service [MLS] in aggregate form, was up 19.5% from $949,230 in 2012 to $1,133,917 in 2013.  But not all areas fared the same.

 

 

 

 

 

 

This map show which areas of Belmont increased more year-over-year than others. If this seems odd to you, read the post we did on Which City is More Affordable—Belmont or San Carlos where we discuss some of the idiosyncrasies that have an effect on micro-regional values.

Belmont 2013 areas median Adjusted

 

If you’re like us and you are wondering why some areas of Belmont saw so much more appreciation than others, we took another step and looked into the size of homes selling in the respective areas during the two periods to see if that could account for the variance.

The red percent displayed on the map is the raw median price reported by the MLS and the blue percent is an adjusted percentage taking into consideration that either smaller or larger homes sold in the two periods.

These are our findings:

 

Areas

2012

2013

Variance

Raw Increase

Adjusted
Hallmark

2150

2280

6%

30%

24%
Skymont

2020

1830

-9%

20%

29%
Belmont CC

1840

1870

2%

15%

13%
Carlmont

1800

2029

13%

40%

27%
Sterling Downs

1190

1220

3%

27%

24%

 

This of course would indicate a raw median home price in Belmont of 26% and an adjusted one of 23.5%–much closer to the numbers reported in aggregate form from the MLS.

INVENTORY

The big brouhaha last year was over the lack of inventory. There were only seven fewer homes listed for sale in 2013 but 23 more sales than in 2012. Of course, this created fewer homes for buyers to choose from, which then led to bidding competition and prices going up at exponential rates.

DOM (Days on the Market)

The time it took to sell a home in Belmont last year almost dropped in half from 2012—from 37 to only 21 days.

PERCENT RECEIVED OF ASKING

The “Sizzle Factor”, or “How Hot Is the Market?” reached a new high with the average Belmont home seller receiving 108% of their asking price compared to 102% in 2012.

What can we expect in 2013? Probably more of the same. The median home price rate of appreciation should slow, as many homes which were under market value have regained much of their lost appreciation. We’d take a guess that appreciation will be closer to 14%-16% on average for Belmont—down about 5% from what we will imagine was the height of appreciation increases in 2013—we’ll see.

The factors to watch which could alter this trend will be the waning bond purchases by the FED which will serve to raise interest rates and may take away the ability for buyers to bid so much over the asking price in the latter part of 2014.

This begs the initial question of are these homes values sustainable and the answer is that depends. If the economy continues to improve and the rate of appreciation slows, than the short answer is yes—for now. But recent developments in China’s economy could have an impact on the rate of future appreciation and the U.S. economic rebound. Remember, what started the whole Bay Area recovery was jobs. If that changes, the game we know today could be over very soon.

 

Disclaimer:

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 info@morganhomes.com.

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.

 

Case-Shiller Bay Area Home Price Index Increases Again

Case-Shiller released their home price indices for August 2013 this week which showed continued year-over-year price increases in all 20 cities while thirteen cities posted double-digit annual gains. The data showed that the 10-City and 20-City Composites increased 12.8% year-over-year.

The annual growth rates accelerated for both Composites and 14 cities.

The Bay Area continues to show month-over-month price increases and year-over-year gains, though current indications are the rate of gains may be slowing. Prices in San Francisco increased 0.9 percent in August, down from a 2.2 percent monthly increase in July.

That stands to reason since homes values dipped below where they should have been during the recession and rebounded like a rubber band being stretched too far and released—at some point all of the pent up energy begins to dissipate.

We suspect that, all things remaining relatively similar as they are today, next spring will see strong home price increases in the spring which will should taper off to moderate by summer. After all, at some point the government will stop buying the 85 billion dollars per month of bonds which helps to keep interestRed arrow rates artificially low. We of course cannot predict when that will happen, but when it does, the homeowners which will have enjoyed unprecedentedly low interest rates will be reticent to move—and that will be a defining chapter in the next new market…

But the cycle is nothing new. Having analyzed our local market for over 20 years there’s a distinct pattern. In a strong housing cycle, home prices rise fastest each spring and begin to wane after summer with winter being the slowest period for price growth and sales.

The brouhaha about home values having peaked just because July showed a slowdown in the rate of home appreciation is premature and a misinterpretation of the statistics, in our opinion.

It’s easy when listening to ten second radio sound bites during your ride home to buy into the attention grabbing headline saying home prices are falling, when what they meant to say is the rate at which home prices are increasing has slowed—as well as they should.

Disclaimer:

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.

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.

What Does Q4 Have in Store for Our Local Housing Market?

Is it a bubble?Now that the media is hyping our local market once again with horror stories of multiple offers, and media proclaimed “Bidding Wars”, our attention turns to watching for signs of a change in the tempo of sales and/or over asking offers. Everyone knows the Peninsula housing market is red hot, and has been for more than a year now. The question now becomes, “When will it change?”

Some Pundits are already predicting a crash in what they perceive as an overheated housing bubble. Of course if they continue droning on about a market crash their theory eventually may come to fruition, but for now their bubble is more akin to a hot air balloon with scant facts to back it up.

The Case-Shiller report by Standard & Poor’s is a good macro-barometer of our Bay Area housing market and the nation as a whole. The Case-Shiller report, most recently released on September 24th 2013, showed an increase in the 20 largest housing markets across the country. In our area or “MSA” (Metropolitan Statistical Area), which includes the Napa, San Francisco, San Mateo Alameda and Contra Costa Counties, the index had risen 25% from July 2012 through July 2013 [Case-Shiller reports are delayed by three months so the September reports was actually for July].

Economists, like the National Association of REALTOR’S Lawrence Yun, have warned that prices have been rising “too fast” and at these double-digit rates of appreciation are “unsustainable”. We couldn’t agree more. The current rate is unsustainable in the long run, but we believe that many factors already in play will mitigate the danger of a bubble. But let’s take a small step back. Part of the reason that home prices have increased so dramatically is that in many areas they were below reasonable market values for so long that just returning to normal would be a huge increase. Many areas saw homes values plummet below the cost of construction. Home prices have not reached the May 2006 peak where the SF MSA stood at a whopping 218—24% higher than today. At the current rate of price increase home values would reach the peak seen in May of 2006 in one year from now.

We don’t believe that will happen—not even in the crazy Bay Area real estate market. Why?

What’s already in play to slow the engine of appreciation and avoid another economic train wreck?

  • More homes are being built as companies try to meet the new housing demands—this takes pressure off of the tight inventory
  • Interest rates will begin rising making homes less affordable—this will put pressure on price increases and most certainly limit over asking offers
  • More equity sellers are being created every day—more inventory will mean less upward pressure on prices
  • Investors are taking a break—as interest rates rise and unbelievable deals once had from the recession are gone, investors look for other opportunities outside of housing. Less competition for homes will help keep a lid on housing inflation.

According to the Case-Shiller study, “Since April 2013, all 20 cities are up month to month; however, the monthly rates of price gains have declined. More cities are experiencing slow gains each month than the previous month, suggesting that the rate of increase may have peaked.

Morgan Brennan who writes for Forbes Magazine on U.S. Housing markets, summed it up best in her article back in June titled “3 Reasons The ‘Bubble-Like’ Surge in Home Prices Won’t Last“. And since we agree with her sentiments, rather than re-invent the wheel we rather encourage you to read more about her theory.

 

Disclaimer:

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.

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.

Belmont Home Values Break New Records – Home Sales Report for May 2013

It’s time to do the numbers, and I can hear the jingle playing in my head “We’re in the Money”–a little ditty from NPR’s Market Report segment which they play when the stock market is up. As each month goes by it seems Belmont home values keep setting new high water marks–not that we’re insensitive to the woes of buyers. We represent Buyers too and we know how frustrating it can be to secure a home in today’s market. The inherent problem for buyers when timing the market is that when housing prices are down, typically so is the overall economy and nobody feels much like taking on an enormous mortgage when coworkers are being laid off and empty cubicles are selling for pennies on the dollar on Craig’s list. Finally, when the economy picks up and everyone feels happy again they all starts to buy at the same time and drive up prices with overbidding. Add to that the sense of interest rate lock urgency and you have a market running full speed ahead. It’s no longer how much a home will sell for, it’s how far over asking will it go.

Belmont Home Values
Can You Save Fast Enough?

This month just about every positive indicator for sellers was up. In fact they were all up except the days on the market [DOM] or the time it took a seller to sell their home—that statistic was down which really means it was up for sellers—another positive sign.

So let’s begin by dispensing with any question of where the market is today—it’s clearly rebounding and doing so at a pace like we’ve never seen—and we’ve seen a lot of ups and down in our 20+ years of selling homes.

What’s driving this rebound at a clearly unsustainable level? Ironically, the good news may be is it’s a temporary influx which may soon be abating. The days of government intervention in the market by keeping interest rates artificially low with bond purchases may be numbered—at least that’s what Wall Street thinks. When we wrote this the stock market was singing “Stormy Weather” as news of an impending slow down in bond purchases sent the stock market into a bit of a humble tumble.

Looking at Belmont home sales for May 2013, we see that there’s no more debate about how the market is doing. The only question is, how long will this corybantic pace continue?

Belmont Home Values
Click on the picture for a larger size.

SALES

Home sales, after being down past month, rebounded with a 23% increase over May of 2013 were 32 homes traded hands as compared to 26 last May. The last time Belmont had that many homes sell in one month was in August of 2005 when 35 homes sold—well before the market correction which began in April of 2006 [it took well into another year for the national housing dilemma to begin to affect Belmont’s more insulated economy].

MEDIAN PRICE

Belmont home values reflected the median price topping out at $1,100,000 this May which has only been eclipsed twice in the history of Belmont home values—once in 2007, and most recently in January this year. One cannot not escape noticing that the median home price in Belmont has been over a million dollars four out of the last five months—a pinnacle in Belmont’s housing values trends as never before have we seen a sustained median home price over the million dollar mark.

So did larger homes sell this year? Each month we’re sure to look and see if that’s the cause and each month the answer has been yes, but only nominally. Certainly not enough to account for the year over year gains.

The median size home which sold in May of 2012 was 1,790 square feet. This May that increased 6.4% to 1,905 while the median home price increased 33%–from $825,000 last May to $1,100,000 in 2013.

What does this all mean? It means that a home 6.4% larger cost you 33% more this year. It means that Belmont home values are rising faster than most buyers can save money.

DOM [Days on the Market]

Statistically speaking, if you are going to get more for your home than you are asking, in Belmont that means you’ll be on the market less than 14 days. Between 14 and 21 you are considered lucky to get your asking price and rarely does a seller get their asking price after 21 days on the market.

This month’s numbers bear that out in spades as all of the homes which received more than their asking price did so in only 13 days. No home sold right at the seller’s asking price but of the few homes which were overpriced, they languished on the market for on average 22 days and received 98% of their initial asking price as compared to everyone else who netted on average 110%. Can you imagine being one of the few sellers who received 12% less for their home than everyone else? Clearly not all agents are created equal.

Of course getting too much for a home is usually the result of the same root cause—an agent who has no idea how to price a home—just that in the latter case the seller is much happier and probably never the wiser.

We’ll leave you with this one watercooler statistic. Did you know that in May the average Belmont home sold for $100,000 more than the asking price!

Drew & Christine Morgan are REALTORS/NOTARY PUBLIC in Belmont, CA with more than 20 years of experience. They may be reached at (650) 508.1441 or info@morganhomes.com

Disclaimer:

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.

Drew & Christine Morgan did not necessarily participate in these sales.

Best of Tour for May 6th, 2013 – Best Homes From Today’s Tour

Time permitting, we like to spotlight the best home from our weekly Broker tour day. One which we feel is exceptional in one way or another.

Sometimes it’s the amazing view, the fantastic kitchen or the stunning location or landscaping–and other times, it’s about the value.

Today’s Best of Tour in our opinion is the home at 31 Willow Glen Way in San Carlos courtesy REIGN Real Estate.

31 Willow Glen

It offers a great secluded west-side San Carlos location and the home has many opportunities for sweat equity. It’s ideal for somebody that wants to move in to a home today and add more value later my making this diamond in the rough a true gem.

If you can get this home anywhere near it’s listed price of $849,000 one should feel elated they got a great deal.

(Note: No open home time have been posted for this home as of yet).

31 WILLOW GLEN WAY, San Carlos 94070 Status: Active MLS #: 81315220
Class: Single Family Residential Orig Price: $849,000 List: 05/06/2013
Area: Beverly Terrace Etc. (351) List Price: $849,000 Original: 05/06/2013
County: SAN MATEO COUNTY
Complex:
Beds: 3 Baths: 2 (2/0)
Approx SqFt: 1,990 (Assessor) :
Approx Lot: 4,400 Sqft (Assessor) DOM: 1
Built/Age: 1933(Assessor)/80 Green doc: No
Parcel #: 049-133-180 Walk Score: 40
Zone: R100 Unit/Bldg: –/– Trnsf Tx:
Unincorp: No CityLimits: Yes Cur Rent: