I've just received an Intero market report on March activity in the Mid-Peninsula area, covering Atherton, Los Altos, Los Altos Hills, Menlo Park, Palo Alto and Woodside. I thought it would be a good idea give you an overview of its findings in this week's blog.
The key message is that we remain in a strong seller's market.
Buyer demand continues to be very robust and home prices are high, due in no small part to continuing low levels of inventory of available homes for sale in the area.
Even though there has been a slight improvement in inventory levels (3% in March), they are still insufficient to meet the needs of buyers. And there has been plenty of evidence of buyers looking for the right home, given the high number of inquiries and interest at open houses etc.
The imbalance of supply and demand does much to explain why there has been a 13% year on year drop in property sales in Mid-Peninsula.
Very simply, if more homes were available, there is little doubt that sales would be up, given the buyer sentiment we are seeing at present. Significantly, however, there was a 104.3% increase in overall sales in March compared with February.
Another strong indicator of seller's market conditions can be seen in the March figures for average days a home is on the market before it sells - just 18 days! This is down 18.2% from February's result and 21.7% down in a year on year comparison. It will be interesting to track this figure in future months.
So what can we take from these stats?
Those of you who remain on the fence about selling your home need to consider these current conditions very carefully.
There are increasing signs that more sellers are recognizing the fantastic opportunities presented by high buyer demand and low homes supply. At the moment, however, this is not impacting on the ease with which a home can sell and often for more than its asking price, due to multiple competitive offers.
My strong advice is to contact us for a more in-depth exploration of demand for your type of home and creating the right marketing strategy to maximize your return on the sale.