What the heck is going on in Daly City?

In the last two weeks six single family homes have closed escrow. Listing prices for six of these homes ranged from $879,000 to $998,888 with an average listing price of $943,000. 

On average, these six homes sold for 21% over asking and with an average of only 17 days on the market.  The premiums ranged from a high of 40% (there were two homes that achieved that premium) to a low of  "only" 11%.

By way of comparison, the single family homes that closed escrow in San Francisco during the same two week period had an average premium of  "only" 15%. 

There was a seventh Daly City home that closed escrow in the same time period.  It listed for $1,100,000, spent 64 days on the market and eventually sold for its asking price.

New Listing Report -- I spoke too soon

New listings during the last two weeks (252) are down compared to the same two week period a year ago (291) so my "whoohoo" in the last post may have been premature.

As evident on the graph above new listings are following the same basic trajectory we see every year at this time but the total numbers of new listings are lower than we've seen in the last few years.

We take a snapshot of active listings at the end of the first week each month for the five categories of single family homes and condos we track.  At the beginning of March we had the lowest number of active listings in the last eight years (except for 2015).

So the inventory situation isn't good for buyers and will help sustain the ongoing seller's market.  In the broader market of all active listings of single family homes, condos, and 2-4 unit buildings the lack of available inventory is even more pronounced.

The column on the right shows the percentage change of number of active listings compared to a year ago in the three groups of residential properties.  The two columns on the left show the month to month change this year and last year.  The month to month increases are typical for this time of year going into the spring market.  The year over year percentage drop for single family homes and condos is cause for concern.

We've also tracked an unusual drop in the number of new listings that went into contract within the same two week period.

None of the 104 new listings of single family homes went into contract in the last two weeks and only eight of the 148 new listings of condos went into contract.  Since the beginning of the year we have usually seen 10-15% of new listings go into contract within the same two week period.

And finally, the number of price reductions has remained the same as the prior two week period (27 vs 28) but is well below the 38 price reductions we saw a year ago.

Woohoo! Inventory Is Up

Compared to last year at this time new listings have increased by 15%.  For the two weeks ending February 26 there were 283 new listings compared to 245 a year ago and compared to 278 in the prior 2-week period.

The majority of new listings was single family homes (113 vs 93 a year ago and vs 106 compared to the prior twp-week period.  New condo listings were also up compared to a year ago (170 vs 152) but actually down slightly compared to the previous 2-week period (170 vs 172).

A smaller percentage of new listings went into contract.  9.7% of new listing single family homes went into contract compared to 17.2% a year ago and compared to 15.1% for the prior period.  11.8% of new condo listings went into contract compared to 15.8% a year ago and compared to 15.1% for the prior period.

The number of price reductions held steady compared to the prior period -- 8 single family homes and 20 condos compared to 7 and 18 respectively two weeks ago.  Compared to last year the number of price reductions is the same for single family homes but down compared to condos (20 vs 27). 

The Five Golden Rules of Home Staging on a Budget

Staging a home before putting it on the market can be an expensive proposition.  Here are some ideas for those who want to avoid that expense but still present their property the best light.

The Five Golden Rules of Home Staging on a Budget:

And check the comments for a few more.

New Listing Report and Active Listings Report

New listings were slightly ahead of the same two week period last year -- 278 to 253. 

15% of those new listings went into contract within the same two week period which is about level with the last three reporting periods back to the first of the year.

Price reductions for the past two weeks were double those of the prior two week period but were only a scant 7 for single family homes and 14 condos.

We also track the total number of active listings for five configurations of single family homes and condos at the beginning of each month.  In three of those five categories total active listings at the beginning of February were down compared to last year at this time. 

Even though the weather may last week may have said "spring market", we are still facing very low inventory levels and continuing high demand.  Attendance at weekend open house showings is strong and multiple offers abound.