Buyers Bidding Above Asking
After a slow start to the year, sale activity has picked up in the San Mateo neighborhoods of Aragon, Baywood, and Baywood Knolls. There have been 31 homes sold through the first seven months of 2012, down slightly from 35 homes sold in the first seven months of 2011.
Do not be confused by essentially flat sales trends. These neighborhoods are favorable for sellers.
In 2012 on average, sellers are getting bids higher than their asking prices. The ratio of sales price to list price has averaged 103%, which suggests that buyers are bidding above asking prices on a regular basis. For the average seller who has sold their home in these neighborhoods, they are getting around $40,000 more than asking (note, not all homes sell, and not all sellers are getting offers above asking). The sales price to list price measure can sometimes be misleading, especially when homes are pulled off the market and then re-listed at a different (usually lower) price. However, the effect is usually to bring the ratio closer to 100% (as re-listed homes are sold closer to their new listing price), instead of over 100%. When the ratio goes over 100% it is often a precursor to rising prices.
One sign that prices may be rising can be seen in the average price per square foot. So far in 2012, it has averaged just over $615, up 5% from 2011. Median and average selling values are also up between 5% - 10% from 2011 to 2012.
Homes that are selling are doing so very quickly. The average home sold in 2012 has done so in just 13 days! Short listing windows require buyers to react quickly to new listings, or risk missing out on a property. With many homes selling within a few days of listing, buyers that do a weekly scan of the market will be missing out on a number of potential homes. It may be helpful to work with a Realtor who can keep abreast of new listings, often before they are officially listed.
By The Numbers - Aragon/Baywood Real Estate for July 2012
|Current Month||YTD Total or Average|
|July 2011||July 2012||Jan - Jul 2011||Jan - Jul 2012|
|Days on Market||14||15||26||13|
|Months of Supply||1.0||1.0||1.3||1.2|
Thinking of buying or selling a home in Aragon, Baywood, or Baywood Knolls?
If you're interested in learning more about the Aragon, Baywood, or Baywood Knolls real estate market, considering selling your home, or thinking about moving to Aragon, Baywood, or Baywood Knolls, please drop me a line and I'd love to connect with you.