2010 Coastside Inventory, Part 2
This post will talk in a little more detail about the 2010 Coastside Inventory, Part 1 post yesterday…
Why the drop from 15 months to 10 months in less than one month?
Inventory dropped to 135 active listings in November, down 12.9% from October (155). Today’s single family home “Active” inventory stands at 110. Has this absorption been occurring from sales or from properties being removed from the market? Both. A five-month difference in MSI is significant, here’s why: more sales and more properties going off the market right now following a run-up in inventory through most of the year.
November 2010 SOLDS – 9 (November 2009 had 12 sales)
November 2010 OFF MARKET- 25 – typical reasons: these sellers are either tired and need a break, are taking time off market for the Holidays, want/need to refinance.
December 2010 to date: SOLDS – 11 (December 2009 to 12/22/2009 had 8 sales)
December 2010 to date OFF MARKET- 23
December 2010 Active single family homes – 110 (not including any pendings); of those 110, 10 are reo/bank-owned (9%); and 13 are short sale listings (12%). 51% of these listings have given at least one price reduction.
There are a similiar number of sales in the latter part of the year compared to 2009, but the buyer activity (showings and open house visitors) seems busier this year – from my own experiences and from colleagues to whom I’ve asked. Why?
1. Buyers are looking for a great deal and some have said they’re feeling like this “could be” the bottom.
2. We have more bank-owned properties for sale than we did a year ago. While still not a major factor in our overall Coastside market; there are more, never-the-less, and buyers pay attention to that.
3. Buyers are exploring the Coastside with its 10+ month inventory compared to 3-4 months of inventory “over the hill” (i.e. greater San Mateo County peninsula) to explore the very real value in one of the best-kept secrets of San Mateo County.
4. Low interest rates continue, but when they increase, even slightly, buyer activity goes up too.
5. A consistent topic on and off throughout the year has been discussion about the new Devil’s Slide tunnel opening, due for Q4 2011 and the perceived positive influence it could have on the local real estate market.