The Mercury News reports the housing market is cooling off across the San Francisco Bay Area, where median sales prices rose 10% year over year.* I consider this as a good sign, as prices have already recovered to their pre-2007 level in several counties. Alameda is about even, but Santa Clara and San Mateo have appreciated beyond the last peak. Continued price appreciation would be unsustainable as housing gets too expensive for the entry level buyer. It’s the first time buyer that allows would-be move-up buyers to sell their homes and reinvest into homes that better suit their needs.
Spoiler alert – look at the charts below to see a possible upcoming change in the Scotts Valley and San Lorenzo Valley balance between buyer and seller during the first 2 weeks of September.
Average home prices rose 5% in the San Lorenzo Valley between August 2013 and 2014, and 6.7% in Scotts Valley year over year.
Days on Market increased in both regions: SLV rose from 43 days to 50 days, while Scotts Valley rose from an astonishingly low 19 days to a more reasonable 53 days. But that doesn’t mean buyers can dilly dally around: 30% of SLV homes were in escrow within 2 weeks; similarly 31% of Scotts Valley homes were in escrow within 2 weeks.
Number of Homes Sold was incredibly stable year to year: 37 homes sold in the SLV during August 2104 vs. 39 homes the previous year. 16 homes sold in Scotts Valley each August.
2014 SLV & SV home prices 1st half of 2014, vs. 1st half of 2013
|Average Price 2014||Days on
Where is the market headed next? To address this question, I look at the balance of housing inventory (the number of homes on the market) compared to buyer demand. For the first 8 months of 2014, we had less than 6 months of housing inventory – considered a sellers’ market, because there were more buyers competing for homes. It’s too early to predict a solid trend with just half a month’s data in September – but I’m watching this!
Looking to buy a home? Call me – the market looks like it may finally be tipping in your favor! Still, there are several important tips I’d be happy to share with you, so you are in the best possible position to take advantage of today’s low mortgage interest rates, still under 4.5% for most buyers.
Thinking about selling? Check with me – your home may be worth more than you think! I can come take a look at your property and help you create a checklist for the most cost effective, proven techniques for getting your house ready to sell. Then I can give you a market value range. Are you worried about how to buy a home at the same time as you’re selling? I’ve several strategies I’d be happy to share with you. There are ways to handle the timing. Call me: let’s create a plan that’s comfortable for you.
Call MC Dwyer, Century 21 Showcase REALTORs, (831) 419-9759.
*Source: Core Logic Data Quick / Mercury News
**Source: single family homes sold through MLSListings.com, zones 34-37, excluding an unusually high priced $2.25 million property sold in Boulder Creek in 2013, and zones 39-41.