McCormick Ranch Sales Update: November 2020

As we start November, there is a little more uncertainty in the air normal. Between the election, rising Covid-19 numbers, and a jittery stock market, certain aspects of our lives seems to be a little shaky once again. However, real estate is still being our rock and holding up strong.

McCormick Ranch has especially been on a tear and that has continued throughout the last few months.

Let's start with price per square foot. The average for single family is now well over $300/square foot. Please keep in mind that this is a rolling 6 month average to help smooth the data. Thus, the last few months are even slightly higher than this. This is an incredible year over year increase of 17.8%.

Condos, townhomes, and patio homes are also at or very near their annual highs.

Pure sales prices are also climbing although they do appear to have stabilized. However, I expect that this will trend higher over the next few months. At the start of the month, there were 8 homes over $1,000,000 that were under contract. And, there were four that closed. We're seeing a lot of demand for premium homes that are fully renovated from top to bottom.

Single family sales prices are also up a whopping 16.04% year over year.

Lastly, let's take a look at the number of monthly sales. We saw a huge bump at the end of the summer and a little bit of a drop throughout the fall. This is fairly normal as sales do tend to taper off in the second half of the year. However, this year is anything but normal. The bigger concern for many buyers is the pure lack of available homes. Some buyers are now getting discouraged and holding off. Or, they are waiting for that perfect home to come up.

Looking forward, I am not expecting any major changes over the next 3-6 months. Our inventory numbers are incredibly low with just 57 homes active and available all throughout McCormick Ranch. There are 68 pending sales. Using these pending sales (and an average escrow of around 5 weeks), these sales would just last about a month. Unless we see a major increase in inventory or a huge rise in interest rates (the other cause of such high demand) then this will continue to be a strong seller's market.

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Yours in real estate,

Randy