Single Family
The differences between the last 12 months (ending with Jan 07) and the previous 12 months (ending Jan 06) were quite significant in the following areas: 1) huge increase of homes coming on the market; 2) sold/list ratio dropped dramatically the past 12 months compared to the previous 12 months; 3) it is taking longer to sell homes now then before; and 4) no surprise, prices are still going up.
Homes that were available for sale in the past 12 months (2/06 - 1/07: 1210) were a huge increase compared to the previous year (2/05 - 1/06: 729) or an increase of 65%. During the same period, the sold/list ratio dropped this past year (2/06 - 1/07: 45%) compared to the previous year (2/05 - 1/06: 93%). In the previous year, the demand was so hot there were months, when more homes sold then came on the market, such was not the case the past year. In 06, the average home took 27.3 days to sell and received a 100% of list price (the numbers were average out over 12 months to eliminate seasonal discrepancies). That was quite a change from the previous year when the average home took only 19.5 days to sell and received a 102% of list price. Given the previous trends, one would conclude that prices should drop, but that was not the case. The average price per square foot actually went up from $473 in 06 to $483 in 07 or an annualized increase of 2%.
Condo/ Town homes
The trend was similar to Single Family homes above.
Increase in homes for sale in 06 compared to 05, and increase of 77%. While the sold/list ratio went from an incredible 107% in 05 to 51% in 06. The time it took to sell went from 16.5 days to 28.1 days and the percentage of list price went from 102.5% to 99.4%. Price increased from $416 to $439 or an annualized increase of 5%.
What is the only thing that can be said with certainty: property values continuing to rise.
Graphics provided courtesy of Trendgraphix.
Steve Mun, Silicon Valley Realtor
www.stevemun.com
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