Welcome to our Belmont home values year-end report. In Part I we close out December’s sales, and in Part II we recap the year and the look deep into our crystal ball for a glimpse at what may be in store for the housing market in 2014.
PART I
Let’s start with December sales:
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December was a strong month for Belmont home sales, as winter home sales go. We compare these sales to the same period each year to avoid any seasonal anomalies.
SALES
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Belmont had 18 home sales in December—one less than last year and five more than 2011.
MONTHS of INVENTORY
At the current rate of sales, compared to the existing inventory and new listings, the time it would take to sell all of the homes in Belmont dropped to an astonishing low of .28 months—that’s a little over a week of inventory. To help put that number in perspective, San Mateo County is running at 2.2 months and the country as a whole is at around five months.
Which part of the equation changed since last year? The number of new listings year-over-year was unchanged and sales were relatively unchanged but the inventory level was already at only five homes for sale going into December this year as compared to 12 last year so the appearance in the rate in which inventory was depleted was exacerbated.
MEDIAN HOME PRICE
The median home price rose to $1,086,000—a 16% increase over last December and essentially unchanged from the prior month. What did change is that in 2012, for $939,000 one could get a 2,150 square foot home while this year, at the new median home price of $1,086,000, one could purchase a home only 1,625 square feet in size. So for 15% more, buyers in 2013 bought homes that were 32% smaller than in 2012.
DOM (Days on the market)
In 2012 it took 54 days to sell the homes that closed in December while this year that number dropped to only 19.
PERCENT OF ASKING
And now we get to the Sizzle Factor—what percent homes are selling of their asking price. It’s a great measurement of just how hot the Belmont housing market really is.
In December of 2012 Belmont homes were selling for 98.83% of the seller’s asking price. This December Sellers grossed 107.6% of their asking price. At a median home price of $1,086,000 that delta is huge! It represents sellers netting on average $95,000 more for their home in 2013.
PRICE REDUCTIONS
In 2012 42% of the listings that sold had price reductions of on average $158,000, while in 2013 only one lone seller had to lower their initial asking price by $30,000.
In 2012 58% of the homes sold for an average of $44,000 under the seller’s asking price and 37% sold for on average $37,000 more.
In 2013 83% of the sellers received on average $99,000 over their initial asking price while only two sellers settled for on average $12,500 less.
In Part II we’ll take a look at Peninsula home values on a more macro level and discuss what may be in store for 2014.
Disclaimer:
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.
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.
