Bidding Wars Continue in San Carlos
Homes continue to sell for 10% above asking prices in the San Carlos real estate market as buyers compete against one another. Here are the highlights as of July 2014 (as compared to data since early 2004):
- Bidding wars continue. The average sales price to list price ratio was 111% in July (the 6th straight month above 110%). However, even in this market there are some very fully priced homes that sell for less than the asking price (making it difficult for buyers to guess if a listing is going to go for $50,000 below asking or $250,000 above asking).
- The median price was $1.33 million. Prior to 2014, there had not been a month where the median price was above $1.3 million. However, July's $1.33 million figure was the second lowest of 2014. It really shows how quickly prices have risen.
- There were 22 unsold homes at the end of July. This is by far the lowest level of inventory in July in San Carlos in the past ten years.
The chart below shows the 12 month moving average median price price, average price and average price per square foot in San Carlos. The moving average helps to smooth out random month-to-month fluctuations to give a clearer view of trends. The trend is clear. Prices are rising. They have increased by about 15% over the past 12 months. Since reaching bottom in early 2012, prices have increased by more than 40%.
As measured by the ratio of sales price to list price, San Carlos continues to see some of the highest bidding wars anywhere in the mid-Peninsula. Buyers have regularly been paying well above asking prices since early 2013. This has intensified in the past six months with the average home selling for more than 10% above the list price (though it always bears repeating, even in this market not all homes sell above asking prices). The ratio was 111% in July 2014. In a market where the average price is around $1.4 million it means that the average bid above asking is approximately $150,000. Until the ratio of sales price to list price reverts back to 100%, it is a sign that prices are likely to continue to rise.
Sales About Even with Last Year
The sales pace in 2014 has been about even to 2013. Through the first seven months of 2014 there have been 173 homes sold, about even with the 175 sales through the first seven months of 2013. At the current rate, there will be about 300 sales in San Carlos, exactly in-line with the average over the past ten years.
Inventory remains at historically low levels in San Carlos. There were just 22 unsold homes on the market at the end of July 2014. Inventory is highly seasonal and normally reaches a peak during the summer months. The current inventory levels are the lowest recorded in San Carlos for July in at least 10 years. The current inventory is well below the previous low of 34 unsold homes seen in July 2012. It bears repeating, low inventory favors sellers. With fewer homes for sale, buyers are forced to compete for a limited supply of listings. This leads to multiple bids and rising prices.
By The Numbers - San Carlos Real Estate
|Current Month||YTD Total or Average|
|July 2013||July 2014||Jan-Jul 2013||Jan-Jul 2014|
|Days on Market||12||20||16||16|
|Months of Supply||1.0||0.6||0.8||0.8|
|Avg $ per Sq Ft||$702||$798||$675||$815|
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