July 2022 Almaden Valley Real Estate Market Update
The July 2022 Almaden Valley real estate market is showing signs of normalizing after two years of dramatic imbalance that strongly favored sellers and sent home prices on an upward trajectory. Inventory has increased significantly, assisting in the transition of the market to buyer-driven. On a national level, buyers seem to be hesitating home purchases due to mortgage rates and other economic factors. With the number of pending and sold single family homes retracting from what we were seeing over a year ago despite the increase in inventory, it is likely that our real estate market is reacting in a similar manner. Although we usually see a cooling happening the end of summer, the graph below demonstrates that we are indeed seeing a healthy increase in homes for sale.
Where we are seeing strong evidence that the seller’s market is retreating is in the average price per square foot. It went from $1027/sqft in June to $898 in August. Much of this can be due to the afore-mentioned seasonal fluctuation we see this time of year. However, we are seeing over double the months’ worth of inventory (up to 2.9 months in July versus 1.2 months in June) plus an increase in days on market from 11 days in July 2021 to 24 days in July 2022.
All this points to a more normal real estate market. Although there are plenty of buyers in the market for homes, the increasing number of sellers mean there is more choice and buyers are less likely to get into bidding wars for available homes. This means that sellers will need to do more to differentiate their homes from others on the market and capture the attention and interest of buyers. If you are thinking of selling your home in our changing market, contact me and let me show you how to can make YOUR home stand out from the others.
June 2022 Almaden Valley Real Estate Market Update
Recent data indicates that the Almaden Valley real estate market is transitioning away from the strong seller’s market it has been for a while. The 36 single family homes offered on the market in June was the highest that inventory has been in over two years. The number of pending contracts has continued decreasing since March, although sales have remained fairly stable over that same time period.
Although an increase in inventory and decrease in sales would indicate a move towards a buyer’s market, the sales price per square foot seems to still favor sellers. June’s average price per square foot logged in at $1027/sqft, up slightly from May’s $997 but down from April’s market high of $1078. This indicates that buyers may not be as active in the market as they’ve been in the past but are willing to spend money. It DOES however signal that, with increased inventory, buyers are waiting for “the right” home to come along rather than engage in bidding wars with other buyers for a too-small number of available homes. This means that sellers might have to change their marketing strategy to gain the attention of these buyers.
If you are thinking about selling your home in this changing market, give me a call so I can show you how I can help!
April 2022 Almaden Valley Real Estate Market Update
Almaden Valley single family homes are still in high demand, although supply is beginning to catch up. April saw 32 single family homes offered on the MLS, a number we haven’t seen since the summer of 2020. This represents a big jump in listings in April, up from 12 in March. The 34 single family homes that sold in April is up from the 32 sales we saw in March but significantly down from 44 we saw same time last year.
Despite the increasing inventory we’ve been seeing since the first of the year, the average sold price per square foot speaks to how competitive the market still is. In April it reached a record $1078/sqft. Back in September 2021 it was $825/sqft, from which the price has been steadily on an upward trajectory.
There was some concern at the beginning of the year that increasing mortgage rates and prices might cool the market, it might not be having the impact many real estate prognosticators feared. Almaden Valley real estate is still in high demand, and so far the increased inventory is finding buyers. If you’re thinking about buying or selling, give me a call!
