Homes Selling Quickly, Above Asking Price
New listings are being snapped up in the Millbrae real estate market. The average sold home in the first three months of the year was on the market for just 17 days. Many homes sold in less than 10 days after being listed. In prior years, the average sold home was on the market between a month and a month and a half.
Homes are selling so quickly as sellers are regularly receiving multiple offers at or above the asking price and are happy to accept the offers. In the first three months of 2013, the average sold home went for nearly 9% above the asking price. In a market where the average price is just above $1 million that means that a normal home is selling for $100,000 more than for what it was listed.
Not surprisingly, given the aggressive buyers prices are rising. While there is tremendous variation from home-to-home, what has happened over the past 18 months is that the average home has increased in value by at least 10%, or $50 per square foot for the average home. Near the end of 2011, a typical 1,800 square foot home in Millbrae was going for $490 per square foot, or around $880,000 in total. Fast forward to the last six months and that same home may have gone for $540 per square foot, or closer to $970,000 in total. With prices on the upswing, the most recent sales point to even higher valuations. In the last three months, the average price per square foot of a home sold in Millbrae was $585. That same 1,800 square foot home may now sell for closer to $1,050,000.
Low Inventory Limiting Sales Volume
There have been 22 homes sold in Millbrae to the first three months of the year, down from 27 sales to start 2012. Sales are down despite the strong buyer demand simply because there are fewer homes for sale. At one point in the beginning of 2013, there were just six available homes for sale in all of Millbrae. In 2012 it was more common to see 15-20 homes for sale at a given time and in prior years to that there was regularly 30+ homes for sale. At the end of March 2013, inventory had increased slightly to 11 homes, but still remained low by historical standards. Low inventory depresses the number of sales, but by restricting supply it augurs well for future price appreciation in the Millbrae real estate market.
By The Numbers - Millbrae Real Estate for 2013
|Current Month||YTD Total or Average|
|March 2012||March 2013||Jan - Mar 2012||Jan - Mar 2013|
|Days on Market||64||15||64||17|
|Months of Supply||1.3||1.0||2.2||1.4|
|Avg $ per Sq Ft||$510||$615||$511||$586|
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