As we wrap up the first quarter, the real estate market is on an extreme hot streak this year compared to previous years. Typically, the first quarter is one of the slowest periods of time in the year. If these last three months turn out to be the slowest months of this year, hold on to your hats because it’s going to be a wild ride!
The number of sales taking place is off the charts. For the first quarter, single family homes are 72% ahead of last year, condominiums are 133% ahead, and land has sold 50% more than last year as well.
Keep in mind these are only number of sales taking place and not necessarily values. While we are seeing lots of activity median and average prices are not increasing nearly as fast. We are seeing appreciation in the lower price ranges, but not in the higher price ranges yet. There still seems to be a huge block getting in the way of higher end homes gaining any traction. At this time regarding homes priced over $1,000,000, we still don’t have any homes in our marketplace under contract and have only had one sale in the last 6 months.
The number of available homes and condos for sale is continuing to shrink adding upward pressure to home values. We have 25% less homes for sale at this time than we did last year and 30% less condominiums.
As demand continues to be off the charts in the lower price ranges, we are all hoping the excess demand spills over into upper price ranges.
Advice for Buyers
With the real estate market as it is, many buyers are having a hard time finding exactly what they want. I would highly recommend making a list of features you want in a home and then prioritizing that list. Draw a line between what are absolute “must haves” vs “wants” and then focus accordingly on those must haves. If you wait for a home to come along that fits all of your “must haves” and all of your “wants,” you may be waiting for a long time. On the other hand, if you have the budget, I think you will be impressed to see what some of the high-end homes have to offer that you won’t find advertised online. Getting to see homes in person is a far more exciting experience than judging by the presentation online.
Advice for Sellers
One of the best ways to generate top dollar for your home is to make sure it is ready for the market before you ever make it available for sale. Real Estate agents can help you focus on what is important and what is not important. We can connect you with home stagers, plumbers, contractors, painters, inspectors and more to get your house ready. However, the easiest way to approach the situation is to ask “What would you be attracted to if you were considering your home for sale.” Most times, the person who buys your home will be very similar to yourself when you bought that same house originally.
Single Family Homes
99 – Active on the market (2 more than last month and 33 less than this time last year)
20 – Sold in March (10 more than last month and 7 more than March 2014)
26 – Currently Pending (1 more than last month and 3 less than this time last year)
$360,000 – Median Price of trailing 12 months of sales
$687,000 – Most expensive home sold in March
$160,000 – Least expensive home sold in March
5.8 Months Supply of Inventory (Also called Absorption Rate)
Condominiums and Townhouses
52 – Active on the market (3 less than last month ago and 22 less than this time last year)
10 – Sold in March (2 more than last month and 8 more than March 2014)
25 – Currently Pending (11 more than last month and 12 more than this time last year)
$250,000 – Median Price of trailing 12 months of sales
$400,097 – Most expensive condo sold in March
$115,000 – Least expensive condo sold in March
5.1 Months Supply of Inventory (Also called Absorption Rate)
91 – Active on the market (6 less than last month and 21 less than this time last year)
4 – Sold in March (2 more than last month and 3 more than March 2014)
10 – Currently Pending (1 less than last month and 2 less than this time last year)
$157,500 – Median Price of trailing 12 months of sales
$278,000 – Most expensive land sold in March
$50,000 – Least expensive land sold in March