Wednesday, April 23, 2008

March Statistics

Click the image to enlarge and see details.

I'm a little late to the game with these but better late than never. The trend is higher inventory, year over year, but with higher prices in general. There is also more inventory in the $1.5-$2.5M range than there has been in the last year. This means sellers of homes in the higher price ranges have less competition and a better shot at getting their asking price or higher. It also means that sellers in the $1.5-2.5M range are seeing more interest (more potential buyers) because there is more to chose from. Even more interesting is that Average Days on Market is down substantially from last year. The key to remember is that if you like a home, more fast.

Thursday, April 17, 2008

Homes are selling and there is some weakness

My projection of selling 10 homes last week was close. There were 9 homes in contract and a handful of new ones came on the market. What I'm seeing with buyers is an expection that prices should drop. The appearance is that they are dropping but in reality, homes that were overpriced are simply coming back down to earth.

A recent sharp drop in price was at 1084 Parma Way. This is a nice house but they had a $400K price drop from $3.195M to $2.795M. Why? Good question. But I am seeing a few homes where sellers don't have the time or patience and they drop the price on their property substantially to drive a sale.

I've seen this in Atherton a lot lately. A one acre lot in a nice location sold at just under $2M in 12 days when it was priced at $2.2M. Why? Just to get it sold.

This actually hurts the market for sellers and potentially buyers because we really want to maintain a balanced market. If the market is weak on the buy side you might get a deal, but when it comes time to sell your own home to buy the new one, you'll take a hit on that sale. strong demand and reasonable pricing will help keep the balance and be a win-win for everyone.

Friday, April 4, 2008

What's Moving - What's Not

The old saying goes, "location, location, location" and this still holds true in the current market. the mitigating factor is also price.

There are currently 64 homes on the market and most of those are priced under $2.5M. Homes are not moving as fast as I would have expected but I believe that's due to current press about the economy and less about Los Altos in general. I will make a predication that the market sees at least 10 available homes get offers by next Friday. There are too many good opportunities out there to pass up.