Bidding Wars in Millbrae
Despite sellers raising their asking amounts, buyers continue to bid above list prices in the Millbrae real estate market. Here are some highlights for the Millbrae real estate market as of March 2014:
- The average sales price to list price ratio was 108.5%. This is a very high reading...but it is actually the lowest of the past four months. It is also the 23rd straight month above 100%.
- Prices are up about 20% in the past year with average and median selling prices now above $1.2 million.
- Nearly every home is selling. There have been only 2 listings expired or withdrawn in the first three months of the year.
Prices have been steadily increasing for most of the past two years in Millbrae. On a year-over-year basis, prices are up about 20%. Since reaching bottom in mid-to-late 2011, prices have risen by around 35%. As a rule of thumb, a home that at the depth of the market was worth around $900,000 would now be expected to sell for more than $1.2 million.
Inventory levels remain low in Millbrae, but they appear to no longer be falling. There were 12 unsold homes on the market at the end of March 2014, which is the same level of inventory as of the end of March 2013. This represents a very supply constrained market. Consider that in 2010, inventory levels peaked above 50 unsold homes in certain months. Now, inventory is 1/4 as much, but there are as many or more buyers in the marketplace. The result has been rising prices and bidding wars. The majority of homes are selling for more than their asking price. The ratio of sales price to list price in the past year has been close to 110%. This means that on average a $1 million listing is selling for $1.1 million. However, there is a very wide variation. Some desirable listings are underpriced and sell for 20% or 30% above the list price. Other homes are priced ahead of the market and actually end up selling for less than the asking price. A swing of 25% represents hundreds of thousands of dollars in a real estate market like Millbrae. Buyers and sellers should ensure that they are represented by a knowledgeable local Realtor to improve their odds of making a smart financial decision within the context of setting asking prices and making offers.
By The Numbers - Millbrae Real Estate
|Current Month||YTD Total or Average|
|March 2013||March 2014||Jan - Mar 2013||Jan - Mar 2014|
|Days on Market||15||15||17||23|
|Months of Supply||1.1||1.7||1.5||1.2|
|Avg $ per Sq Ft||$615||$727||$586||$712|
Thinking of buying or selling a home in Millbrae?
If you're interested in learning more about the Millbrae real estate market, considering selling your home in Millbrae, or thinking about moving to Millbrae, please drop me a line and I'd love to connect with you.