Buyers Chasing Limited Inventory....Predictable Results
A dearth of new listings combined with the same strong buyer demand that we are seeing up and down the Peninsula is having the predictable effect in the real estate markets of Aragon, Baywood, and Baywood Knolls. Prices are rising, homes are selling quickly and inventory is at or near historic lows. Here are some highlights for these combined submarkets as of July 2013:
- The six homes sold in July 2013 were on the market for an average of 11 days! The majority of homes are selling within two to three weeks of being listed, with many sold in less than a week.
- The average price per square foot was $741 in July 2013, after recording $756 in June 2013. In the prior four years there were only two other months above $700.
- Inventory declined to just two unsold homes on the market as of the end of the month. Last year at this time there were 11 homes for sale.
- Buyers continue to regularly bid above asking prices. The ratio of the average sales price to list price was 107.6%. It has been well above 100% throughout the year.
Through the first seven months of 2013 there have been 37 new listings in the Aragon/Baywood area, down from 53 new listings in the same timeframe in 2012. While listing activity is down by 16, sales are only down by five (29 in 2013 vs 34 in 2012). The result has been lower inventory. At the end of July 2013 there were only two unsold homes in the area and for the year, inventory has averaged about three homes. In prior years there were usually an average of 5 to 9 homes for sale.
A strong economy, lowish mortgage rates and a renewed confidence in the residential real estate markets means that there are lots of prospective buyers chasing a dwindling supply of inventory. The result has been an increase in both prices and the number of homes going for more than the asking price. The data suggests prices are up 10% to 15% in the past twelve months.
By The Numbers - Aragon/Baywood Real Estate for 2013
|Current Month||YTD Total or Average|
|July 2012||July 2013||Jan - Jul 2012||Jan - Jul 2013|
|Days on Market||13||11||12||14|
|Months of Supply||1.2||0.3||1.4||0.6|
|Avg $ per Sq Ft||$585||$741||$620||$692|
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.