Belmont Median Home Price Hits Record High

What’s up with this crazy market? The stock market hit an
all time high this week and our local housing prices are right in step. Pundits
say that our housing market tracks the S&P 500 and if they’re right, we’re
in for a heck of a ride.

Belmont housing prices continued to show gains into February
as Belmont had both month-to-month and year-over-year increases in the median
price—so let’s start there.

This graph shows the median price trend for the past year in
Belmont.


February 2013 for Belmont

[click on the image for a larger graph]

MEDIAN PRICE

The median home price in Belmont increased 42% last month
over a year ago. Belmont’s February home price reached $1,108,000. To put that
in perspective that is the second highest median home price for Belmont since we began tracking the market in 1998. The only other time it was this high was in
October of 2007—right before the housing crash hit the Peninsula.

If you’ve been following our market
update you know we never leave the raw numbers alone. Since Belmont has a relatively
small number of homes selling each month when a disproportionate number of
smaller or larger homes sell in a given month it impacts the median home price and
skews it off axis.

In order to adjust for this we look at the size of homes
selling in the two periods. Insofar as we know we are the only local experts
drilling down to this level of detailed analysis.

Homes which sold in February 2103 in Belmont were 20% larger
than they were in 2012 during the same period, so while the median increase in
price was 42%, could this mean the adjusted median home price gain was actually
closer to 22%?

Looking at it another way, the difference in the size of homes
selling in the two periods was 1,970 square feet in 2013 and 1640 square feet
in 2012—a difference of 330 square feet (20% increase this year). Now let’s
multiple that by the median price per square foot the homes sold for in 2012
and we get $181,500. If we add that to the median price in 2012 our adjusted
median home price for last year would be  $961,500—meaning that using this method for
adjusting the median home price we get a 15% increase year over year; and the
reality probably lies somewhere in between. Any way you slice it, 15-20% increase
year-over-year is an amazing rebound and this increase will hopefully create
more “equity sellers” and more seller’s with equity means more sellers who can sell which will in turn increase the housing supply.

One of the most impressive statistics is that only two homes had any price reduction at all and just as few sold for less than the seller’s asking price.

SALES

Sales were down this year over last so we checked the
inventory levels to try and understand why. In January of 2012 there were 21
new listings which hit the market. Adding to an already bloated inventory that
caused the inventory level last year in February to soar to 41 homes available
for sale. Contrasting that to this year when the new listings dropped 50% to
only 14 and our inventory of homes for sale stood at a paltry 12!

PERCENT OF ASKING

In February of 2012, seven of the 19 sales, or 37%, were for
more than the seller’s asking price by on average $46,000. This February 73% of
the sellers received on average $106,000 over their asking price.

For those sellers who were less fortunate, in 2012 53% sold their
home for on average $29,000 less while in 2013 only 18% had to sell for on
average $35,000 less.

The percent the sellers received of asking were 97.3% in
2012 as compared to 107.7 in 2013.

If you are considering selling your home the above statistics
might lead you to believe that it’s back to the old days when any agent could
put a sign out front and sell your home. And while that may be true—that your
home might sell—the percentage you actually receive of your asking price varies
relative to the degree of expertise in agent’s marketing plans and advice. If
you want to be statistically guaranteed that you’ll get the best results,
contact us for a consultation. Our record for selling every home we’ve listed,
for more money, and in the shortest period of time is unmatched—of the top
Belmont REALTORS, nobody has us beat.

If you are looking for someone to help you sell your home, we’re someone you should know.

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.

DRE License Numbers 01124318 & 01174047

Drew & Christine Morgan, REALTORS | Notary Public

*All data was retrieved from MLS Listings, Inc. The Multiple Listing Service for San Mateo County.

 

My Story. A Story About A Home in San Carlos

I visited a home in San Carlos today and the seller had this story posted for everyone to read. I found it moving…

My Story

Although I was “born” in 1969, my story really began 13 years before. One spring day, a young couple looking for the perfect spot to raise a family, came down the lane. They had seen many, many properties but the woman knew the minute she spotted the majestic oak that this was THE ONE.My Story in San Carlos

Don’t you want to see the house first asked the man, referring to the little, two-bedroom house that was, at the time, the only one on the property.

“Yes”, replied the woman as she plopped down under the oak, “But it won’t matter. I already know this is our home.”

And so it was. Soon they welcomed their first child, then another, and so on. The little house was bursting at the seams. But there was room to grow- underneath the grand oak tree. I swelled with pride when my family moved in. the eldest, on the verge of becoming a young woman, loved her private balcony and hiding away in the library that held shelf-after-shelf of her favorite books. The little red-headed boy chose the largest room because it looked out onto the huge yard he loved to explore, particularly his favorite plum trees that he knew would provide years of climbing and juicy plums ideal for neighborhood battles. The littlest, a brown-haired girl, was tucked away in the smallest bedroom, bedecked with a brand-new canopy bed that made her feel cozy and provided the perfect cave for her collection of much loved stuffed animals.

So, our life together began. As the years went on, I was filled to the brim with love, laughter, song, tears, and heartache –all the joys and sorrows that life brings. I embraced my family and loved watching them grow and change. But, one by one, the children began to leave. I was sad, but I knew that no matter what house the moved to, I was always Home. I was the place that held the Christmas tree; I was the kitchen that cooked Thanksgiving turkey; I was the pool that hosted birthday parties. But as time passed, their visits were less often, the couple stayed with me, but it became clear the others had, at last, found their own perfect homes in which to build new memories.

And one day the couple looked at each other across their now – empty table. Their bodies were bent and their faces weathered. They new, and so did I

“It’s time.”

Time to pass me on to another family, to build their own lifetime of memories, underneath the branches of my sheltering oak tree.

 

Belmont Housing Market Report for November 2009

Well it’s another one of those tricky months where the numbers tell an inaccurate story when it comes to the value of Belmont homes.

Nov Stats for Bel

(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. That’s a whopping 14% decrease but wait—let’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 that’s an important factor in your home buying decision.

DOM

The time it took to sell a home is virtually unchanged but it’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).

% Received

The percent a seller received of asking remains as a statistic, virtually unchanged; however this number varies dramatically from home to home.

What’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!