Coastal Real Estate and Lifestyles

This has been an good year for these two Pacifica neighborhoods.  This chart shows two things 1) Average and Median sales prices on the left axis.  I wanted to show you both so you can see that they’re pretty consistent.  Note there are 2 lines for these unless they overlap.  This means there probably weren’t any properties that sold out of range (an outlier) for the area, which is one possible reason for differing numbers.  2)  Inventory (the number of properties for sale) on the right axis.  Note how different the numbers were a year ago compared to now.  Those of us working in the Park Pacifica and Sun Valley neighborhoods have been aware of this for months.  Below the graph are some key points.

This is a different market from a year ago.  I wrote about these neighborhoods in April 2009, titled Pacifica Buyers Find Value.    “Except for 2 sales in February 2009, there have been no closed sales since September 2008.”

The dip in January 2009 means that there were no closed sales that month.

Inventory peaked in late Winter and again in late Summer, a little earlier than more typical Spring and Fall inventory bumps.  In Nov 2008 there were 13 single family homes for sale and 1 sale (13 months of inventory); last month there were 4 homes for sale and 2 sales (2 months of inventory.  In the last 3 months, the absorption rate has been between 2-3 months!

The Median Sale Price broke the $600K mark in the Spring of 2009 and has sustained.  The Median  Sales Price in Nov 08 was $475,000; Median Sales Price in Nov 09 was $663,000.  Who knows if this approximately 28% increase will last in 2010 but it’s a welcome upturn for sellers who have seen a downturn since the peak in Quarter 1 of 2005 when the average sale price in these neighborhoods was $1,033,838.  At that time the Median sale price was $812,500, which is probably the more accurate range if we look at the trends.

Average Days on Market at the peak was 34; average days on market over 6 months is 58; average days on market over the last 3 months is 35.  This is with only one bank-owned (REO) property in the mix (1166 Fassler, originally listed for $513K, reduced to $498K 30 days later, accepted offer 10 days later, closed on 12/20/09 for $523K.)  I mention this because distressed properties can wreak havoc with days on market averages, but not for this market right now.

Potential sellers in Park Pacifica and Sun Valley - get a Comparative Market Analysis if you’re thinking about selling but wanted to wait for the market to stabilize.  There have been enough sales to satisfy appraisal concerns and price intelligently.

Potential buyers considering Park Pacifica and/or Sun Valley - have your financing in place BEFORE you make your offer.  Listing Agents may contact your mortgage broker or lender if there will be some financing.   Also, there are still cash buyers in the market.  Work with a Realtor who can guide you through a strategy that will insure you end up with the right house for you.

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Related Article:Comparing Sun Valley and Park Pacifica - 3/31/2009