April 1, 2014 – The month of March showed an increase of new homes on the market at a rate of 35% more listings in March versus February. In February there were a total of 17 new listings versus 23 for the month of March. This is good news for home buyers looking to get in to a home in a market where multiple offers are the norm and homes are being sold above asking price in many situations.
The average list price for a single family home was $887,182 for an ACTIVE listing, meaning not yet sold, and $737,863 for homes that are in PENDING status. This means the obvious, more affordable homes are selling faster.
There were a total of 13 closings in March with an average sales price of $787,800 for a single family home with 3-4 bedrooms, 2 baths and 2,310 square feet. In February, the average sales price was $723,233 for a 3-4 bedroom home, 2 baths and 1,884 square feet. This is a jump in average sales price of $64,567. This does not mean however that the same home went up in value by almost $65,000, it simply means that slightly bigger and slightly higher priced homes are selling and closing.
Homes in March 2014 sold at 99% of asking price with half of single-family homes and condo-townhouses selling at or above asking price.
Condo-townhouses were in their own world as the average list price was $391,667 and sold for $417,633 on average. That means that condo-townhouses sold for 106% of asking price which was higher than in February when condos-townhouses sold for 105% of list price. At this moment there are 6 condo-townhouses on the market with all 6 in pending status. The average list price for a condo-townhouse is $474,167 which will buy you a 2-3 bedroom, 2 bath home with about 1,300-1,450 square feet. Typically, condo-townhouses only are lasting 11 days on the market before they sell on average. This is a great time for condo-townhouse owners who want to sell and move up into a single-family home.
What Do These Numbers Mean?
The real estate market continues to be strong and there is still a very high demand for housing that is not yet being met in terms of available inventory. But help is on its way for home buyers as more homes are in fact coming on the market, as is the norm during Spring when more and more home sellers put their homes on the market. If the past 24 hours are any indication, there should be more good news for buyers as we have seen a total of six new listings come on MLS within the past 24 hours in the Scotts Valley area. This will mean more competition for home sellers and more to choose from for home buyers. Don’t expect a massive flood of homes on the market however, but at this point any sign of more inventory is good news and helps to balance the market a little more.
Interest Rates Drop
Rates came down a little this week versus last week as Bankrate reports an average of 4.38% for a 30 year fixed rate fully amortized loan versus last week’s 4.39%. Rates for a 15 year mortgage are averaging 3.38% today versus 3.41% last week. This is pretty much in line with what I have been writing for some time now, and that is that you will see rates stay pretty close to where they are today with an occasional increase or decrease in the next few months and averaging about 4.375-4.625% through summer.
All in all, more inventory and low rates is good for everyone. Its good for home buyers and its good for home sellers who will be selling and more than likely be buying up or buying down as they will be able to now find a new property when they sell their homes. Look for the market to stabilize a little more as we head into summer, but it will still be a seller’s market as there are still quite a lot more buyers than there will be homes available.
That’s the latest Scotts Valley Real Estate Market Report!
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.