We anticipated Belmont home sales closing at eight for the month of November in a previous post where we did an extensive review of the local market.
Click on the play tab to hear an overview
These first two graphs will be explained more in detail further in our post but as you can see the percentage of homes selling over the seller’s asking price has increased.
(Click on the chart below for a full size image).
(Click on the chart below for a full size image).
As you can see from the sales report, sales are down considerably from the previous month and down from than that of a year ago as well. We’ve added a chart showing the differences (below) that will help put November’s numbers in perspective.
To sum up the data we’ve also added arrows depicting whether each indicator (or data point) is an improvement this November over the two previous periods reviewed. An up arrow ↑indicates that this November’s data is an improvement over the previous periods while a down arrow↓ indicates the opposite is true.
MEDIAN PRICE
The Median price, the point at which half of the homes have sold more or less, remains virtually unchanged from October 2008. Counter intuitively November’s median at $912,000 is higher than in 2007 when it stood at $894,000. The size of homes selling greatly impacts the price per square foot as smaller homes sell for more per square foot and larger homes tend to sell for more period. Accounting for the difference where in 2007 the median home size was 1645 square feet and this year where the median home sold was 1,910 sq. ft., at $514 per square foot that would make the 265 sq. ft. difference in size worth around $136,210 meaning that home values actually dropped 7% over last year’s November, not up 2% as the raw data suggests.
SALES
At only eight sales as compared to last November’s 20, it’s amazing that inventory is not higher. At the time we wrote this the inventory of active homes for sale in Belmont stood at only 50. To some degree that helps balance the supply and demand and keep prices in relatively check.
This November three homes sold over their asking price—the same number as last year. The difference is this year homes that sold over their asking price represented 43% of all the November sales while last year it represented only 15%.
PRICE PER SQUARE FOOT:
Be careful not to read too much into this. Last year homes sold in November sold for $70.00 more per square foot than this November—but the homes that sold last year were much smaller; and as was discussed above, smaller homes tend to sell for more per square foot because land is a constant in the calculation and can account for half of a home’s value.
PERCENT RECEIVED:
This November sellers received on average 99.38% of their asking price—virtually unchanged over October’s performance and better than last November’s 97.9%. This needs to be weighed against the CDOM (Continuous Days on Market) and the number of price reductions statistics to be meaningful at all. Sure homes sold this November closer to their asking price, but did the seller receive more in real dollars? How many price reductions and how many days a typical home is on the market help put this number in perspective. Notice that homes which needed a price reduction in order to sell accounted for nearly 63% of all sales this November while last year they accounted for only 25%. But the time it took to sell a home, though higher than in October, dropped from 46 to only 29 days this November. What does this suggest? That more sellers are forced to lower their expectations and lower their asking prices sooner rather than later.
This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this intended to be specific to your situation-always consult a specialist who is familiar with the details of your situation.
Information deemed reliable but not guaranteed. This is not intended to be a representation of homes listed or sold exclusively by Drew or Christine Morgan or Carlmont Associates.
