Welcome to our December newsletter. December is typically the slowest month for residential real estate. That’s why, in addition to taking a look at what’s happening in our market, we thought it’d be the perfect time to tell you what sets our team apart from other agents and to explain what benefits you get from working with us to buy or sell a home.
This month we’ll examine:
- Market Update for the South Bay/Peninsula: Home Prices, Month’s Supply, Days on Market, and Sales-to-List Price
- Why Finding the Right Real Estate Agent Is Essential
- Top 5 Reasons We’re the Best Team to Help You Buy or Sell a Home
Market Update for the South Bay/Peninsula
Here’s a snapshot of this month’s housing market in the South Bay/Peninsula across four key indicators: home prices, month’s supply, days on market, and the sales-to-list price.
- Single-family home prices have remained relatively flat over the last two years.
- Condo prices, which historically have fewer sales and greater volatility, showed mixed results.
Consistent prices indicate a balanced and stable market, so sellers should price their home in line with comparables.
- What it means: Month’s supply is a measure of how many months it would take for all current listings on the market (including listings under contract) to sell at the current rate of sales.
- Worth noting: In California’s high-demand market, a “balanced” supply level is three months, which means there are three months of housing inventory on the market at the current rate of sales. Less supply favors the sellers.
The market slightly favors sellers. Supply levels in most counties are low and tightening compared to the previous year, giving sellers the advantage of robust demand and rising home prices.
Days on Market
- What it means: The number of days a property has been actively listed on the market.
- Luxury vs. entry-level homes: With fewer buyers for luxury homes, the number of days-on-market is higher for this segment than for entry-level properties.
Days on market for both single-family homes and condos are very low across the board and dropping further. Buyers will need to act quickly on offers. Sellers of luxury homes should have realistic expectations about how long it will take to sell their property.
- What it means: The sale-to-list price ratio is the difference between the original list price of the home and the final sale price.
In most markets, single-family homes and condos are selling close to the original listing price.
We offer free home valuation if you’re curious to know what your home is worth!
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