What a year.  Sales volumes and prices were down across the board, and Days On Market almost tripled.  Lets take a an in depth look at the year.

Volume

The number of homes on the market were about the same as last year, and the volume was also similar, which is to say, not fantastic.
The average number of homes sold in the skyline area per year since 2000 is 29, this year we had 12, so less than half the average.  Last year was 13.  There were more homes that didn't sell by a factor of almost 3, so about 26% of the listing sold.  Fortunately 75% of our sold in the area.

Sales Price

Sales prices in the area were down as well, the median sales price this year was $1,136,000 as opposed to $1,588,000 last year, or a 17% decrease.
The interesting thing was that the sales vs list price had such a large discrepancy, almost $200,000.  This, along with the volume would lead me to believe that sellers are asking more than buyers are willing to pay, with the hope that someone will make them an offer and they will work towards the middle. Although this would appear to make sense, the problem with this approach is buyers don't operate this way.  They will not look at homes that are out of their price range, and very few are comfortable offering considerably less than the asking price.  There are exceptions obviously, some sophisticated, experienced buyers will do this, but not many. 

Days On Market (DOM)

The interesting thing is that Days on Market (DOM) increased from a median of 60 last year to over 160 this year.

This is a gigantic increase, and only includes sold properties.  I would guess that if I added the properties that expired or canceled this number would be even greater.

So what does this all mean to a seller?

As a seller I would monitor your activity very closely. If you aren't seeing activity and the weather has been nice, you need to look at your advertising, and  pricing.  If it is being advertised, and not getting calls or showings, then it is the price that is typically the issue. 

How and when you come out on the market is important.  With this many properties on the market be mindful of the price you come out with, as well as when.  Many sellers want to put their home on the market in May. The problem with this? Many sellers put their homes on the market in May, so there is a ton of inventory for buyers to choose from.  We typically suggest to our clients to get them out a bit earlier so you don't have to deal with the same amount of competition.  When you do put your home on the market, make sure the price is right.  Testing the water at a higher price can cost you that sale.  You don't want to bring your home out early with a bunch of advertising and have it priced at a premium.  Buyers have a feel for value, if they see something that is expensive, they typically just don't look at it and you get lost in the noise.  Even when you come back and reduce it, unless it is significant, you have already used your initial excitement phase so the property is not as interesting to other agents and buyers as when it first came on the market.

What does this mean for buyers?

The number one thing it means to a buyer is that if you are interested in a house, and the asking price is not what you are willing to pay, make an offer at the value you feel is reasonable.  It never hurts.  It is kind of like dating, the worst they can say is no. 

If you would like more information or the data we pulled this from, please contact us at www.birdhayes.com or 650-851-8100

All the information was taken from the MLS for area's 272 and 273, and is deemed reliable but not guaranteed.
Scott Hayes DRE#01401243 and Karin Bird DRE#00929166