August 2012 Mountain View real estate market update

The August seasonal sales decline was significant in Mountain View as sales dropped to 25 homes with an average selling price just under $1,090,000.  There were 35 new listings compared to 27 last month which meant that the months-supply-of-inventory rose to 2.4 from 1.2.

The good news is that sales and the average selling price are both up from August 2011 which means that the long term trend is still up.  The sharp drop in unit sales is likely because of such strong activity in the spring and early summer months.  There are still many buyers in the market right now and well priced homes sell.

Another factor with inventory is expired listings.  Those are still at 3 expired listings in August, up from 2 in July.  That's an good indication that homes are priced right and selling.  I expect that home sales will pick up in September and we'll see the number of expired listings drop.