Millbrae Real Estate - March 2012
Inventory Plummets in 2012The Millbrae real estate market is becoming increasingly inventory constrained. At the end of March 2012 there were only 14 homes for sale in the city. At the same point last year, there were 33 listed homes. Every seller now has less than half as much competition, putting the pressure on buyers. Inventory has been low since the end of 2011. The number of new listings in 2012 is down by 25% compared to 2011, so there just have not been enough newly listed homes coming onto the market to replenish the inventory.
Impressively, even with low inventory, sales have remained steady. In the first three months of 2012 there were 26 homes sold in Millbrae, compared to 25 sold in the same period last year.
Too Early To Discern Price ResponseWith buyers having to compete for a dwindling supply of homes, and clearly showing their demand by purchasing about the same number of homes as last year, we would expect there to be an upward price response.
Indeed, the data does point in that direction. Compared to all of 2011, the average sales prices for homes sold in the first three months of 2012 are 2% higher, the median sales prices is 6% higher, and the average price per square foot is 5% higher. However, it is a little too early to tell for sure if prices are rising, because there just have not been enough sales. At the very least, we can say that they are firm.
Going forward, the extraordinarily low level of inventory definitely points to higher prices, especially if buyers are in the market. When buyers have to compete for a limited supply the tendency is for the most sought after homes to get multiple offers, culminating in offers above asking prices. When offers come in above asking prices it leads to higher selling values, higher comps and higher asking prices for future listings. We will continue to track inventory levels to get an idea of future price movements.
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.
By The Numbers - Millbrae Real Estate for March 2012
|Current Month||YTD Total or Average|
|March 2011||March 2012||Jan - Mar 2011||Jan - Mar 2012|
|Days on Market||42||68||53||66|
|Months of Supply||3.3||1.0||3.2||2.0|