In what is predicted to be a strong 4th quarter, October closings hit an average sales price of $1,057,269 with an average list price to sales price ratio of 99.6% for single family homes. Condos and townhouses averaged $574,100 in sales price and averaged a list price to sales price ratio of 101.5%.
There were a total of 30 closings, almost one per day, which was a 30% increase over the same month in 2016 which had 21 total closings in that month.
On October 31st, there were 62 single family homes for sale with an average list price of $1,283,167, with 32 of those still being in “active” status with an average list price of $1,315,606. Homes that were in in pending status, with an offer accepted but still in escrow had an average list price of $1,248,565. This means that the average sales price in this 4th quarter is projected to jump up substantially as those homes that are pending close at a much higher sales price then closings in October. I expect closings to average somewhere close to $1.2 million in the 4th quarter. Could be a little higher or a little lower, but somewhere in that vicinity.
HIGH PRICED HOMES MOVING
Right now, there are 15 homes at or above $1.5 million with 8 already being in pending status. Just a couple of years ago a $1.5 million home raised eyebrows in terms of asking price, yet today it is becoming more common than ever.
SILICON VALLEY SURGE CONTINUES
In many of my open houses, I am seeing even more buyers coming from Silicon Valley than ever. I expect this to continue as the economy continues to roll in the area and more and more buyers get priced out over the hill in Silicon Valley.
I just wrote an offer for a buyer and the property got multiple offers, with the winning bid being a buyer buying the home with zero contingencies (conditions) and way above asking price. I expect to see a lot of that in certain homes that are very desirable, making it tough for local buyers who want to buy in the area.
“the hottest quarter of 2016 in Scotts Valley was in fact the 4th quarter as it averaged 101.6% of asking price and I have to think that we will see much of the same for the final quarter of 2017.” – Robert Aldana, 10/06/17
Remember what I wrote in the previous article as we closed out the third quarter of this year, the 4th quarter of 2016 was the strongest quarter and I expected pretty much the same for this quarter. It is happening. It really is. I know, for many years the advice for home buyers was to wait for the holidays as homes tend to sit during that time and you can get a better deal as sellers are more motivated to sell if their home is on the market at that time. But not in this market, not right now.
And you know how many are saying that inventory is very low right now? Well, they have been saying that for quite some time, for two or three years now. And guess what, it is not low, it is now the new norm in my opinion. People are just not putting up their homes for sale as many cannot afford to move up or even downsize, as they see their property taxes substantially higher than where they have them a the moment.
SELLER & BUYER TIPS
If you are a home seller today, make sure your home is “show-time” ready and looks at it’s best prior to going on the market. Price it right, price it accordingly, and with a strong marketing plan the market will define your final price via the supply and demand factors.
If are a home buyer, you can still be a little picky, but don’t over-do it as there are many buyers waiting in line for that home and are willing to do whatever it takes to get it. Just know the local market where you are buying.
As always, Happy Selling and Happy Buying!
REALTOR® since 1986
BRE # 00921165
Keller Williams Realty
831-252-3959 Direct Line
ABOUT ROB: Robert Aldana is a 30+ year licensed real estate veteran with Keller Williams Realty, 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.
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”.
In 2015, 2016, and 2017 Robert has been the agent chosen by more Scotts Valley area home sellers and buyers than any agent, and Robert was recently awarded the Santa Cruz Sentinel Readers Choice Award as the Best REALTOR® in Scotts Valley for 2016. Click here to read more.