New Listing Inventory Drying Up
November’s real estate activity in Scotts Valley, specifically in the 95066 zip code showed a lot less new homes on the market with more closings than new listings by a higher than 2-to-1 ratio as there were only 7 new residential listings that came on the market compared to 15 closings.
Of the 7 new listings, 3 were single-family homes with one already being in pending sale status. The remaining 4 new listings were condo-townhouses, with 3 out of the 4 already being in pending sale status.
There were 15 closings in November with 2 of the closings being condo-townhouses with an average sales price of $378,500 versus an average list price of $381,500. This means that condo-townhouses sold for less than asking price on average, 99% to be exact, a rarity in this hot segment of the real estate market. October condo-townhouses closed at 101% of list price meaning there was a 2% drop in sales price versus list price.
The average days on market for condo-townhouses was 79 days.
The 13 remaining closings that were single-family homes closed for an average sales price of $851,195 versus an average list price of $894,577. This represents an average sales price to list price ratio of 95% which is almost 5% less than closings in the month of October which came in at a crisp 99.8%.
On average, $850,000-925,000 will buy you a 3-4 bedroom, 2.5 bath home with approximately 2,315, all depending of course on the neighborhood and amenities, as well as the condition of the home.
Currently there are 32 single-family homes as well as condo-townhouses on the market in 95066 with 22 being single-family homes. 11 are active and 11 are pending sales, 50%.
There are currently 10 condo-townhouses on the market with 7 of the 10 already being in a pending sale status.
Rates continue to be ridiculously low. I know, same old song, but it is what it is. You can right now buy a home with an interest rate just above or just below 4% for a 30 year fixed rate mortgage, or somewhere between 3-3.25% for a 15 year fixed rate mortgage. Rates are so low that your mortgage payment right now for a 30 year fixed rate mortgage at 4% is about $477 per month, plus taxes and insurance for every $100,000 that you borrow.
More of the same is expected throughout the rest of the year in inventory, market activity and interest rates as there is only one month left in the year. There are still active buyers out there and inventory is very dry. It will be interesting to see what the market does when more homes come on the market the first part of the year.
However, if you have a home in a very desirable neighborhood that you are thinking of selling, you will not go wrong in putting it up for sale at a time where there is no other competition. If you are selling and buying, it will probably be a wash in terms of what the advantage would be by doing both as you will sell for top dollar and probably pay top dollar.
Look for my complete breakdown and analysis of the entire year sometime around the first week of 2015 as I plan to do a monthly comparison, month over month, and also do a study on what the market has done in the past 5 years and where I think it will go. If you recall, I did a complete first half of 2014 report that detailed activity for the first 6 months of the year, and I think this new report will be even more intense and insightful.
Wishing you all a Happy Holiday Season and best wishes for a Happy New Year!
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.