Montara Market Morsel
Montara average and median home prices have consistently trended up over the last ten years. That’s as far back as the MLS data will go. Annual sales volume has also gone up…that is, until 2008. Why?
In my opinion, the top reasons are: a market correction that was first noticed in weaker markets in Q4-2006, fewer qualified buyers due to tighter lending qualifications, credit markets unstability, and lack of understanding of available loan products. Add California’s economic woes creating jobs uncertainty and the homeowners who have Option ARMS with a reset date coming in 2009 to this. (Look for an upcoming post on why homeowners with these loans will affect you.)
Overall, Montara has not taken the hit of other San Mateo County and California areas because there have been qualified buyers out there who want to live here and pay to do so. Median sales prices have risen most years since 1998 and are now in the $830K range. Average sales prices have also risen most years since 1998. 2008 average sales price for Montara single family homes to date is $926,800.
However, the higher price points have already begun to adjust. For example, a 3rd Street home was listed for $1,299,000 and sold for $1,150,000 in Oct 08 (the last sale in Montara). A Cedar Street home started out at $1,200,000 in July 2007 and sold for $998,000 in July 2008. Looking at the expireds, cancels, and price reductions in the last two months confirms the trend is continuing. Montara’s 2008 entry level price points in the $600K-$800K range have sales prices more in line with the list price so far; we’ll see what happens. Q4 usually quiets down, but the higher inventory may be causing more sellers to rethink strategies.
2008 Median sold prices by Quarter:
* Q1 – $740,000
* Q2 – $830,000
* Q3 – $847,500
# of closed sales in 2008 – 15
($599K to 2.6Million Sold prices)
# of available homes – “Active” in MLS – currently – 20
($375K to 4.5Million)
# of available lots – 9 ($199K to $4.5Million)
Don’t let the average and median prices fool you…Montara is an eclectic community that offers a wide range of price points. One sale can alter the numbers significantly. Since newspapers report median and average numbers, that is why I will include those numbers in these neighborhood posts. Search Montara homes to see all the price ranges and home styles.