As we head towards what is usually the last 30-45 days of the most active time in the real estate market (more on this in my closing thoughts), lots of stats are showing a very similar Scotts Valley real estate market in 2016 through the end of May versus the same time frame in 2015, except in the average sales price of homes, which saw single-family homes up 13%, and condo-townhouses up by a whopping 22%.
The average sales price for single-family homes this year was $930,492 vs. last year’s average sales price of $823,331, a difference of $107,161.
The average list price to sales price ratio so far this year is 99.7% versus 100.7% at the same time in 2015.
So far there have been 46 closings with an average of 36 days on the market vs. last year’s 49 closings with an average of 29 days on the market. This year there were 75 new single-family home listings vs. last year’s 76 new listings.
The highest and lowest sales price for single-family homes in Scotts Valley in 2016 was $1,900,000 for an amazing home at 7 Casa Way (see above video) and $250,000 for a fixer-upper at 164 Dusty Drive.
The condo-townhouse market is also experiencing much of the same as there have been 18 closings this year so far with 19 at the same time last year. Average days on market are currently 27 days vs. 25 days in 2015.
Last year the average sales price was $491,942, selling at approximately 101% of asking price. This year the average sales price is $600,506, selling at approximately 100.7% of asking price.
One of the reasons for the surge in average sales price for condo-townhouses are some of the Town Center Townhouses (see above video) that have been selling in the $740-750,000 price point. These townhouses are approximately 3 years old and many sellers who were waiting out the 2 year period in which to be able to sell their home without having to pay capital gains tax put their homes on the market as their housing needs changed.
The window for the hottest time of the real estate market is closing within the next 45 days or so.
What does this mean?
Traditionally, and almost like clockwork, the best time of the year to sell your home is mid first quarter through the end of June or mid-July. After that time frame, many people who have wanted to buy have already done so and their focus shifts towards vacations and getting their kids and families settled in their new neighborhoods and schools. Although not everyone who buys fits this criteria, I make this comment in general because most home buyers in the area are families with kids who may be changing schools or families that are new to the area. It is just what I am seeing.
I believe that the market will stay active through late September, right before the holiday season, I just think that the hottest time for selling is quickly closing up as the demand is higher during the peak season. If you are not ready, you are not ready. As I stated, the market will still stay very active up until the holidays, its just that we are in the hottest time of the year for selling.
But if you are needing or are wanting to sell, and you are ready, price it right and put in on the market while the demand remains at its highest so that you have the best chance of getting as close to top dollar as possible. It’s not a sales pitch to get listings or to get people to sell their homes, I am just stating the obvious.
If you are wanting to buy and have gotten beat out on offers, your time is coming with a little more selection and possibly more flexible sellers if you can wait it out until July or August. If the right deal pops up now, you do not need to wait. I just think that things will soften up just a little as we head towards the end of summer and into August as they usually do.
What can I say? They continue to amaze me with the rates I am seeing people getting on their mortgages. I am closing in a couple of days on Jumbo Loan with one of my home buyers who got his interest rate for 3.25%. Believe it.
How long will rates stay this low? I am done predicting because just as I think that they will start to creep back up, things happen with our world economy or a new crisis comes to the forefront that end up keeping rates low.
Happy Buying and Happy Selling!
Robert Aldana is a 30+ 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.
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”.