The Aiello’s Peninsula Real Estate Market Write-Up
This week’s real estate statistics are interesting! Check out the amazingly positive trend line for the Pending Sales. While a portion of that number is due to longer closes of escrow primarily from Short Sales or new lending delays, I’m feeling that the majority of that increase is merely due to increased demand. Several factors may be influencing this demand, including but not limited to: The upcoming expiration of the $8,000 Federal Tax Credit, Consumers believing that we are at or may be close to the bottom in some price categories, some very good values, there are a lot of cash buyers particularly in the entry level pricing and historically low interest rates.
As I mentioned last week, typically Belmont and Burlingame have approximately the same amount of units in each of the Statuses. While this trend remains consistent in the Pending and Month-To-Date Closed statuses, the Active listings in Burlingame are now nearly double of those in Belmont.
One of the things that my weekly survey helps me with is to get a visual of where the price ranges are of “what’s selling” in each market place. Generally, there is some consistency from city to city, status to status (Pending and Solds) in the price ranges. Look at the difference between those prices and the Listing Prices. The Pendings and Solds give a clearer picture of what price ranges are selling. It’s a good tool for determining the desirability and marketability of a property. Again, take Belmont for example: The median active list price is $949,950. The median pending list price is $799,000. That’s a large difference. So my theory is that if you have a home with an actual value in the $799,000 range, your chances of getting an offer on it relatively quickly are quite good.
Lastly, I wish I could claim credit for these following statements, but it was Avram Goldman, President of Pacific Union, who said this and the simplicity of it is brilliant.
There are two factors that influence a quick sale of a property. The first is Immediate Emotional Appeal (I.E.A.) This is when a property is brought into the market fully prepared to “wow” a buyer. They fall in love with the home emotionally. The second factor is Immediate Value Appeal (I.V.A.). With all of the pricing information available on the internet, buyer’s can walk into a house in a market they are familiar with and know the value the minute they walk into the home. Sometimes buyers know this better than some agents, because the buyer may be focusing on a very finite marketplace, either by location, price, or home configuration and amenities. So here’s what happens: The buyer walks in the home and falls in love with it. If, in their heart, they feel the home is worth $1,000,000 or a little more. The home is priced at $1,150,000. The buyer will think, I love that house, but I’m going to wait until the first price reduction. It they walk into that same home and it’s priced at $950,000 (the lower end of its value price range), they think; “I love that house and it’s a deal. I can’t wait because someone else is going to buy it.” Then there is a higher possibility of getting multiple offers and doing one, or both, of two things: drive the sales price up (usually not to the ultra high levels of our former market) and/or generate an offer with very clean terms.
That’s it for now! But, you can bet that we will touch on the IEA and IVA factors on a seperate blog post in the near future. Enjoy this weeks stats!
Stats From: August 30th, 2009 6:00AM
| City |
ACTIVE |
High (List Price) |
|
Median (List Price) |
|
Low (List Price) |
| Belmont |
35 |
$1,550,000 |
$949,950 |
$615,000 |
||
| Burlingame |
69 |
$3,395,000 |
$1,388,000 |
$514,900 |
||
| Foster City |
21 |
$1,550,000 |
$1,150,000 |
$849,000 |
||
| Hillsborough |
71 |
$12,999,000 |
$2,795,000 |
$1,350,000 |
||
| Redwood Shores |
20 |
$1,458,000 |
$1,095,000 |
$740,000 |
||
| San Mateo |
115 |
$2,595,000 |
$899,000 |
$379,000 |
||
|
|
||||||
| Total |
331 |
|||||
| City |
PENDING |
High (List Price) |
|
Median (List Price) |
|
Low (List Price) |
| Belmont |
29 |
$1,299,000 |
$799,000 |
$549,000 |
||
| Burlingame |
33 |
$2,099,000 |
$1,219,000 |
$599,000 |
||
| Foster City |
13 |
$1,195,000 |
$998,000 |
$798,000 |
||
| Hillsborough |
23 |
$6,988,000 |
$2,975,000 |
$889,900 |
||
| Redwood Shores |
6 |
$1,299,921 |
$889,469 |
$769,000 |
||
| San Mateo |
124 |
$1,900,000 |
$600,000 |
$375,000 |
||
| Total |
228 |
|||||
| City (M.T.D C.O.E.) |
SOLD |
High (Sales Price) |
|
Median (Sales Price) |
|
Low (Sales Price) |
|
|
||||||
| Belmont |
15 |
$1,340,000 |
|
$835,000 |
|
$575,000 |
| Burlingame |
13 |
$2,332,000 |
|
$1,120,000 |
|
$745,000 |
| Foster City |
15 |
$1,450,000 |
|
$1,065,000 |
|
$800,000 |
| Hillsborough |
6 |
$4,200,000 |
|
$2,425,000 |
|
$1,425,000 |
| Redwood Shores |
4 |
$980,000 |
|
$779,000 |
|
$680,000 |
| San Mateo |
38 |
$1,790,000 |
|
$771,500 |
|
$380,000 |
|
|
||||||
| Total |
91 |
Please remember to read our webpage disclaimer, that statistics and all other information on this webpage/blog is deemed reliable, but not independently verified or guaranteed.
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