Buy.Sell.Stay. May 2016 Market Report Pacific Coast Carmel, Monterey, Pebble Beach, Santa Cruz
Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix June 2016
Executive Insights
Last month saw a flood of inventory hit the market like we hadn’t seen in a while. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month. But that excess inventory didn’t last long and May saw the listing inventory drop drastically in almost every part of the Bay Area. As we predicted, the strong job market and pent up demand for inventory allowed those people that have been standing on the sidelines to get back in the home-buying game. And they didn’t waste any time as sold properties for the month of May were up significantly month-over-month in almost all parts of the Bay Area. This aggressive move on the increased April inventory is also chipping away at the days on market (DOM) for sellers. As buyers are trying to secure the purchase of available properties, we are seeing the DOM on a downward trend across the region. This trend should continue as the inventory continues to stay low into the later summer months. Another win for sellers is the fact that buyers have access to amazing mortgage rates right now. Here’s an excerpt from Realtor.com from June 13, 2016: “The national average rate for a 30-year fixed mortgage is 3.63%, an increase from April but far below May 2015’s 4.12%. Realtor.com staffer Jonathan Smoke explains that with the Fed likely not raising rates this summer but likely raising them again by this time next year, the time is now to lock in.” This mortgage rate news is going to allow buyers to be more aggressive with their offers and more than likely keep inventory low. In turn we will continue to see multiple offers and over asking prices in the most desirable regions of the Bay Area. So in the blink of an eye, all those houses that hit the market in April have new buyers calling them home. It looks like this roller coaster of a real estate market will continue to keep us on our toes into the next several months. So continue to keep an eye on your individual region and let us help you become a more informed home buyer or seller.
Market Highlights Pacific Coast
Total Homes for Sale
333
Luxury Homes for Sale*
91
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
85
$2,890,000
62
$1,300,000
Inventory Pacific Coast
Sold
200
333
314
296
268 232
315
316
368
363
For Sale
258
250
287
300
379
349
350
356
400
400
Total Number Of Homes:
85
102
68
60
83
50
92
107
110
110
136 87
97
96
98
100
117
150
0 15-Mar
15-Apr 15-May 15-Jun
15-Jul
15-Aug 15-Sep
15-Oct
15-Nov 15-Dec 16-Jan
16-Feb 16-Mar
16-Apr 16-May
It is a Neutral Market Property Sales (Sold) May property sales were 85, down 12.4% from 97 in May of 2015 and 16.7% lower than the 102 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is lower by 16 units of 4.6%. This year’s smaller inventory means that buyers who waited to buy may have smaller selection to choose from. The number of current inventory is up 6.1% compared to the previous month. Property Under Contract (Pended) There was an increase of 3.7% in the pended properties in May, with 111 properties versus 107 last month. This month’s pended property sales were 5.1% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
2
-77.8%
$500K $1M
66
-39.4%
$1M - $3M
174
4.8%
$3M - $5M
45
36.4%
$5M - $10M
31
29.2%
$10M +
15
87.5%
Pricing Pacific Coast
Average Prices in $,000:
For Sale Price
Sold Price
3500 3000
$3,240 $2,693 $2,378 $2,394
2500
$2,480
$2,570
$2,477
$2,678 $2,669
$2,868
$2,945
$3,028
$2,906 $2,890 $2,890
2000 1500 1000
$1,634 $1,131 $1,151
$1,335
$1,146 $1,081 $1,199 $1,034
$1,315
$1,548
$1,206
$1,203
$1,332
$1,421
$1,300
500 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
The Average For Sale Price is Depreciating* The Average For Sale Price in May was $2,890,000, up 20.7% from $2,394,000 in May of 2015 and the same as last month. The Average Sold Price is Depreciating* The Average Sold Price in May was $1,300,000, down 2.6% from $1,335,000 in May of 2015 and down 8.5% from $1,421,000 last month. The Median Sold Price is Neutral The Median Sold Price in May was $975,000, up 11.4% from $875,000 in May of 2015 and down 2.5% from $1,000,000 last month.
Pricing By The Numbers
Average Price Per Square Foot.
$586
-16.7% Month over Month
On The Market Pacific Coast
Average Days On Market
80
75
72
68
70
73
70 63
55
60
69
62
61
53
53
50
46
50 38
40 30 20 10 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for May 2016 was 62, up 24% from 50 days last month and up 12.7% from 55 days in May of last year. The Sold/Original List Price Ratio is Rising The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 94% is the same as last month and up from 1.1% in May of last year.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
0
N/A
$500K $1M
53
2%
$1M - $3M
64
27%
$3M - $5M
128
66%
$5M - $10M
25
-740%
$10M +
0
N/A