Hillsborough Market Update July 2011 – Lots of Activity!
It has been one of the strongest summer selling seasons in Hillsborough in recent memory. There have been 55 home sales in the May, June and July timeframe, including 17 in July, which was the most for any three-month period in at least seven years. Even after accounting for the modest, but respectable beginning of the year, there have been 95 sales through the first seven months of the year. That is up 32% from the same period last year, and a staggering 106% from the same period in 2009. While 2009 and 2010 are easier comparisons because of the recent economic weakness, even in the peak sales years of 2004 and 2005, there were only about 100 homes sold at this point.
There has been 6% fewer new homes listed so far in 2011 than at the same point last year. With fewer homes listing and more sales, inventory has declined. The active inventory has been between 60 and 70 homes in Hillsborough for most of the year. Last year, inventory was above 90 homes for part of the summer. Fewer homes for sale mean that each seller has less competition.
Even though the number of Hillsborough home sales has increased, it is challenging to infer a price trend because the overall market is so small. Price levels jump around a lot depending on which specific homes sold, particularly because Hillsborough price points range from $1.5 million to well over $10m. For example, the median price in July 2011 was $2.1 million, compared to $2.8 million in May 2011. When we average things out over a longer time, we can tell prices are holding steady. The price per square foot has averaged about $700 in 2011, which is a little above 2010, but well within normal fluctuation.
As the market continues to be strong, sellers are not seeing the need to dramatically reduce prices to entice buyers because of the demand, though there are continued targeted price drops. The sale price divided by list price has averaged just over 95% in 2011, meaning that homes sold for about 95% of their asking price. The “normal” rate varies by area. In Hillsborough, it has been averaging just below 95% for the past few years.
By The Numbers - Hillsborough July 2011
|Current Month||YTD Total or Average|
|July 2010||July 2011||Jan - Jul 2010||Jan - Jul 2011|
|Days on Market||64||51||65||61|
|Months of Supply||5.3||4.1||7.3||4.6|