Less Homes For Sale
The month of August was a month with less listings per day, with .87 per day, then just two months prior when June showed an average of 1.19 per day. This represents a drop in new listings on the market of 27% in just two months.
Of the 27 new listings, 22 were single-family homes.
8 of the new single-family home listings (36%) have already went into contract or sold, with an average list price of $924,571 for all current pending sales listed in August, and one closing for $735,000.
The highest price for a new listing in August was $2,795,000 and the lowest was $525,000.
5 condo-townhouses went on the market, with an average list price of $469,800. Of the 5 new listings, 2 are already pending sales – 40%.
A total of 21 homes closed escrow in August.
16 were single-family homes with an average sales price of $832,006 versus the average list price of $840,775. This means that single-family homes closed at just under 99% (.98957) of asking price. The average days on market was 53 days.
The remaining 5 closings were condo-townhouses with an average sales price of $423,200 versus the average list price of $423,200. On average, condo-townhouse sellers got exactly what they were asking for in regards to sales price. In comparison to figures for condo-townhouses as reported in the first half of 2014 Scotts Valley Real Estate Report, where we saw an average of 102.68% of sales price versus list price in the first six months of 2014, the condo-townhouse market is still a strong market, but it has cooled off a bit based on these numbers.
The average days on market was 24 days for condo-townhouses.
Tough to argue with numbers because the numbers never lie. In searching for several home-buyers myself in the Scotts Valley area, the 4 bedroom, 2 bath home in the 1,800+ square feet range with a 7,000+ square foot lot, under $900,000 is a very strong market provided that the property is priced right and has many features and amenities. You can buy in the mid to high $700,000 range and still get a very nice house in a development, but not many will have a lot of yard space over 4,000 square feet. Not a bad thing at all, it all comes down preference and need. There are also quite a few homes in the lower price point of under $700,000 with one single-family house in Scotts Valley priced at $525,000.
Condos and townhouses are still a hot ticket. Not flaming hot, but still hot and active with very little on the market in general.
If you are wanting to sell this year, do it soon as next month will get us started into the holidays when many buyers take a break from buying homes and instead turn their attention to spending their money on the holidays and gifts. The inventory level is down from just a month ago, as expected and the norm in September and October. But there are some good deals out there if you look hard enough.
Interest Rates Stay Low
The mortgage market and the longevity of such low interest rates continues to amaze me with 30 year fixed rate mortgages in the 4.125-4.25% and 15 year fixed rate mortgages coming in at around 3.125. If you can, go with a 15-30 fixed rate mortgage and try and avoid adjustable rates if possible. Many times you think you will only need that mortgage for 3-5 years and find yourself 10 years later wishing you had taken advantage of such low rates that were available.
Robert Aldana is a 29+ year licensed real estate veteran with American Dream Realty in Scotts Valley, and also a long-term resident and homeowner here in town. He is the founder of MyScottsValley.com and the popular local news and events page at Facebook.com/MyScottsValley.
He was voted as the “Rave” winner in the category of “Favorite Real Estate Agent” in the Scotts Valley Press Banner’s contest for 2014, and also awarded the Scotts Valley Man of the Year in 2014 for his contributions to the community.
Robert was also a nationally syndicated real estate journalist and was a highly sought after interviewee on the topic of real estate by local, national and even international media, in addition to appearing on HGTV and local NBC’s “Best of the Bay”. Many of his articles and interviews can still be read at RobertAldana.com, DeadlineNews.com, RealtyTimes.com, Forbes.com, among many other real estate and finance news sites and publications.