May 2021 Almaden Valley Real Estate Market Update
May was another month for the record books in Almaden Valley. Fifty single family homes sold last month, which is a whopping 285% increase from the 13 that sold May 2020. Fourteen single family homes were on the market May 2021 compared to 38 in May 2020. Although the number of pending sales dropped slightly to 45 from 50 this past April, it was dramatically ahead of the 32 we had in May 2020. The average price per square foot edged up slightly, $888/sqft in May 2021 compared to the $885/sqft we saw in April. Compare this to the $639/sqft we had in May 2020 and we can see that the market is absolutely crazy!
What is even crazier is the fact that at this rate, we have about NINE DAYS worth of inventory based on the rate of sales. Well-priced homes in move-in condition are finding an eager market. Although homes are often selling within days of hitting the market and with multiple offers, the rapid pace means that there are many details that can get overlooked that can cost both sellers AND buyers money. If you are thinking about buying or selling a home, contact me and let me show you how I can help you get the best deal!
April 2021 Almaden Valley Real Estate Market Update
The Almaden Valley residential real estate market continues to skyrocket. Average price per square foot has reached record levels. In fact, April’s $895/sqft represents a major jump from the previous month’s $795/sqft.
We HAVE seen a dramatic jump in homes coming onto the market. In March, there were 12 single family residences listed for sale while in April, we saw 20. But inventory is so tight and buyers so keen that this 67% increase in inventory was snapped up, leaving buyers clamoring for more. Homes are lasting an average of ten days on the market before finding a buyer, often after spirited bidding wars.
Although many people are expressing concern about a potential bubble burst, this soaring real estate market is quite different from the bubble and burst of the early 2000’s. The Great Recession was caused in part by a mad rush for homes fueled by easy money from banks. Our current vigorous market is fueled in part by historically low interest rates and a shortage of homes due to builders having been slow to pick up their building pace after the recession.
It’s a great time to be a seller. Buyers, however, aren’t left out of the good times. The aforementioned historically low interest rates make it quite attractive to jump into the market. If you are thinking about selling or buying, contact me and let me show how I can help YOU make the best of this wild market!
March 2021 Almaden Valley Real Estate Market Update
The supply of single family homes in Almaden Valley continues to be incredibly tight, a phenomenon that much of the country is seeing. Many homeowners who might consider moving are hesitating to do so, knowing that they would very likely be facing the exact scenario as a buyer that benefits them as a seller; fierce competition for a limited number of homes offered on the market that often results in bidding wars that increase the purchase price of listings. This well-considered hesitance to sell homes is perhaps the biggest bottleneck we’re seeing in the tight supply of homes. In one Texas market, a Realtor reported receiving over NINETY offers on a listing, with many being cash above list price with no concessions asked of the seller.
There are many factors fueling this unprecedented market. One is a slowdown in new home construction that started during the Great Recession, which not only removed new homes from the market but also resale homes as original owners put their once-new homes on the market. Increasing interest rates are motivating buyers to make purchases sooner rather than later. We are also seeing an increase in the number of younger and first-time home buyers. All these factors are creating an extremely challenging market where the number of homes that have sold has gone down only because there aren’t enough homes offered for sale. Contact me if you’d like more information.
