March Sales Update

In February, we saw many of the same trends from the preceding months. Sales are still strong, inventory is still low, and there aren't any signs that this will change in the near future.

Total home sales in all of McCormick Ranch

February 2016: 40

February 2017: 47

February 2018: 42

A tale of two numbers

When looking at Single Family Homes, prices have dipped a hair from the highs while $/sq foot has actually skyrocketed. What's the cause? Lots of smaller homes seem to be selling. All things being equal, a 2,000 square foot home will have a lower overall sales price compared to a 3,000 square foot home. Yet, the price/square foot will be higher on the smaller home.

Between February 2017 and February 2018, single family homes overall prices are only showing a 2.1% gain. But $/sq foot is up 8.3%. When looking at overall trends, I think our real gains happily in the middle of this and in the 5-6% range.

Homes are selling quickly!

The average days on market (DOM) for sold single family homes is now down to just 61 days. And, it is dropping fast into full on seller's market territory. Condos are at 60, Patio homes at 74, and townhomes at 82. Even though patio homes and townhomes sound soft that is still very quick. If you are looking, be prepared to see a home the second it is listed or you may lose out.

To look at this a different way, there were only 93 active and available listings on March 1st. With 42 February sales (and this is from a short month), that is just over two months supply of homes.

Looking ahead, March home prices appear could go up significantly

When looking at the future, there are 4 $1,000,000+ single family homes that went under contract in February. If we assume a regular 30-45 day close, they should close in March. Considering that only 6 closed in all of 2017, we could see this skew the data some moving forward. It'll be interesting to see!

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Randy