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Q1 2009 - Coastside Inventory to Closed Sales
Published May 3rd, 2009 in Market Activity. by Marian Bennett, Coldwell Banker Tags: 2009 Q1.
This is for single family homes only, for the entire central Coastside - Half Moon Bay, El Granada, Moss Beach and Montara. It does not include Pacifica or Pescadero.
I’m only showing closed sales instead of pendings (sales under contract). Buyers are out there writing offers, the Realtors are busier than ever, it’s just harder to close transactions. The going may be tough right now, but the tough are going strong! Trust me, the people involved in this year’s sales to date celebrated getting theirs accomplished. I suspect many, if not most involved in those deals felt like it was one of the hardest things they’ve done in a while, but worth it in the end (kinda like planning a big wedding?)… Congratulations if you were one of them.
Related recent Coastside Market Activity articles:
Wow !
Closed sales in 2009 are only 21% of closed sales in 2007.
As I tell all my seller clients - if you want to sell in this market you must price your property at a price that buyers will feel is a DEAL - a price that buyers will feel is maybe 5% to 10% below current market to proitect them if the market continues to drop.
I did a study for many cities on the Peninsula - looking at closed sales during January and February over the past 11 years. In most case the 2009 sales were 50% BELOW the 11 year average.
So it is a tough time to sell but remember if you are going to buy upon sale and stay in this area - whatever you feel you lose as a seller you will gain back as a buyer and get lower property taxes to boot!
I believe that sales will come back to a more normal level within six months because enough sellers are adjusting their expectations. What concerns me is all the foreclosures that will hit the market right about then as well. Essentially the number of sales will improve (good for economy), but the inventory will stay at a high level for a long time (bad for prices).
As AM Cenedella said above, when you sell at a lower price, you can also buy at a lower price, and save on property taxes.
Arn and News - you both bring up good points.
1) Move-up sellers are still on the sidelines because they don’t want to, or can’t, sell yet.
2) NODs are still being filed, homes are still going into foreclosure, and banks are still holding assets. The Coastside foreclosure numbers are miniscule compared to greater San Mateo County and beyond, but as long as county, state, and national numbers are rising, it will affect us here.
I would like to elaborate on both, so look for follow up posts.