Today’s post looks at overall activity for Menlo Park from Oct 2008 to Oct 2009. The post also takes a look at overall data and sales data reported to the Multiple Listing Service in the Willows and Allied Arts Area.
For the city overall, data reported to our Multiple Listing Service indicates that the average sales price was $1,273,000 in Oct 2008 versus $1,337,000 in October 2009. As of October 31, 2009 there were 2.8 months supply of inventory although days on market had increased to 58. (Note this data is informational only and may not be completely accurate as sales not reported to the MLS are not reflected)
The Willows/O’Conner area of Menlo Park did not have any sales reported in Oct 2008 but the average sales price reported to the MLS was $954,000 in November 2008 versus an average sales price of $1,056,000 in October 2009. As of October 31, 2009, there were 1.8 months supply of inventory with average days on market reported at 29 days.
Allied Arts/Downtown data indicates an average sales price in Oct 2008 of $1,478,000 versus $1,585,000 in Oct 2009. As of October 31, 2009, there were 2.3 months supply of inventory with average days on market reported at 52 days.
Low interest rates combined with tax incentives have lead to a very active year. If you are thinking of entering the market, it is important to meet with a mortgage professional early in the search and get preapproved particularly in the entry level price ranges as we are seeing multiple offers for well priced properties. It is also important to educate yourself about the different “micro markets” that comprise the San Francisco Peninsula real estate market.
As we approach the end of the year, many items such as the first-time homebuyer tax credit are receiving a great deal of attention in the press. I recently received this email update which shed some light on the impact of this tax credit on the housing market:
“It’s On The Table!
There’s no question that the government’s first-time homebuyer tax credit has spurred a significant amount of sales this year. Latest estimates show that some 400,000 additional sales occurred this year due to the first time home buyer tax credit, which is about 8% of all sales this year.
In the latest news, The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers. While its passage remains uncertain, this plan would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to homeowners who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.
The U.S. Senate won’t vote until next week at the earliest. As soon as they do we intend to create a piece that will allow you to communicate the news to your clients.
This week, Business Week reported “The broad improvement in the housing indicators in recent months leaves no doubt that the long-awaited housing recovery is finally under way.” The article went on to report: “Policy alone cannot explain the 24% gain in existing home sales since January, nor the 22% increase in new-home purchases, the 40% rise in single-family housing starts, and the recent upturn in home prices. The primary driver is historically high affordability. Fixed 30-year mortgage rates are at 5%, a multi-decade low, and prices have plunged a total of 30% since May 2006, based on the Standard & Poor’s Case-Shiller Home Price Index. By that price gauge, homes are well undervalued relative to both rents and aftertax income.”
Source: Rick Turley, President, San Francisco Bay Area Coldwell Banker Residential Brokerage.
The final vote has yet to take place. More to follow.