March Madness off the court
You know it’s the month of March when the sounds of chirping birds and leaf blowers are replaced with the sounds of screaming college broadcasters expressing shock when a Seed 13 team bumps out a Seed 2 in the NCAA basketball championships. It’s that time of the year when the television remains on and many of us are glued to the scenes of young collegiate athletes breaking out in the big leagues on the national screen. And while many of us have been busy filling out our brackets and taking in countless games, a March Madness of its own kind has spawned in our mid-county real estate market, coming off the heels of a rather sleepy February.
The madness, we believe, has to do with a whole lot of buyers wanting few properties on the market. We are seeing a trend that might be unable to sustain itself. The trend being homes fetching more than $200,000 -- and in some cases $300,000 or more -- above asking price.
The average sales price right now is 12 percent over the list price. We have seen five of the 17 homes sold since January 1st in Belmont go for $300,000 or more over asking.
In late February, a beautiful Spanish colonial at 118 Elwood St. in Redwood City sold for $500,000 over asking! Listed at $1,750,000, this home sold on Feb. 22 for $2,250,000.
Another Redwood City home at 3089 Goodwin Avenue, an updated 1,720-square-foot home in the Sterling Heights neighborhood near Woodside Plaza, sold on March 11 for $1,760,000. It was listed at $1,375,000. That’s $385,000 above asking!
The average days a home will sit on the market these days is about nine. Nine days to come up with the winning strategy to compete against multiple buyers!
According to Core Logic DataQuick’s February 2015 San Francisco Bay Area housing market report, the number of homes in February was slightly lower than in January, and actually the lowest for the month of February in the last seven years.
That’s true for San Carlos. In February we saw the lowest amount of inventory in that city in more than five years.
A total of 4,376 new and existing homes and condos sold in the nine-county Bay Area in February, the lowest for that month since February 2008 when 3,989 homes sold.
In San Mateo County in February, 328 homes sold, roughly a 16 percent reduction form the 394 homes that sold in February 2014. However, the median home sale rose nearly 6 percent to a median sale price of $815,000 – the third highest median sale price in the nine-county region.
Prospective buyers and sellers might have taken the month of February to get their ducks in a row. Yet, we are seeing the March Madness begin with a flurry of homes coming up, readying us all for a very busy Spring.
So while we might not be able to predict what team will become the NCAA champs this year, we can predict that things are heating up off the court and on the streets in mid-Peninsula real estate.
Contact us to fill out your bracket!