Prices Continue Rising
There seems to be no end to the increase in home prices in the San Carlos real estate market. Prices are rising 1% to 2% per month and buyers are regularly bidding 5% to 10% above list prices. Nearly every home that is listed is eventually selling (though of course not all are selling above the final list price).
As of April 2013, the 12 month moving averages for median price, average price and average price per square foot are all 15%+ above where they were one year ago. The data shows prices are just a few percentage points lower than where they were at the previous peak in late 2007/early 2008. At the current rate, the data will likely show prices reaching a new high in the next month or two. However, given the current trajectory, prices are probably at their highest level ever in San Carlos.
The price per square feet has averaged $660 over the last six months in San Carlos. In the prior six months it was $582. Given that the average home in San Carlos is around 1,800 square feet, the change in selling prices is nearly $150,000 (1,800 square feet x $78 per square feet).
The imbalance between buyer demand and seller supply is the highest it has been since the absolute height of the market frenzy in 2005. The ratio of the average sales price to list price has been 107.7% so far in 2013, including 110.2% in April 2013. The ratio was 106.6% in all of 2005. Sellers are already reacting to market conditions by raising asking prices. Buyers should expect this to continue as sellers set prices based on more recent comparable sales.
Low Inventory Inhibiting Sales
In the first four months of 2013, there were 71 homes sold in San Carlos, well below the 98 homes sold in the first four months of 2012. However, 2012 was a bumper year with the most sales since 2005. 2013 sales activity is actually slightly ahead of the 2011 pace.
Sales activity is being depressed by the lack of available listings. At the end of April 2013, there were just 14 unsold homes on the market in San Carlos, as compared to 30 unsold homes in April 2012. Inventory levels are the lowest they have been in at least ten years!
By The Numbers - San Carlos Real Estate for 2013
|Current Month||YTD Total or Average|
|April 2012||April 2013||Jan - Apr 2012||Jan - Apr 2013|
|Days on Market||49||21||43||23|
|Months of Supply||0.8||0.6||1.1||0.8|
|Avg $ per Sq Ft||$558||$692||$544||$646|
Thinking of buying or selling a home in San Carlos?
If you're interested in learning more about the San Carlos real estate market, considering selling your home in San Carlos, or thinking about moving to San Carlos, please drop me a line and I'd love to connect with you.