As we begin 2017, here’s a look back on the Belmont real estate market and a perspective on the coming year.
2016 saw the continuation of several trends: an abundance of prospective buyers, low available housing inventory and a very strong Sellers Market.
Single family house prices continued to rise, with the average single family house price reaching an all time high at $1,126,053, up 7% from a year ago. Inventory of houses for sale dropped, with only 121 single family homes sold in Belmont in 2016, down (-23%) from last year. This dramatically lower number of homes for sale marked an 8-year low.
We continued to see strong buyer demand for single family houses. Since the market started to recover in 2010, the “days to offer” (DTO) number has generally been going down, with many houses being scooped up in less than 10 days on the market. Another key indicator of demand, average sale price to average list price, has been on the rise. In the last 3 years, the ratio of average sale price for single family homes has been at or higher than the average list price. For 2016, this ratio was at 102%. Combined, these two measures mean that buyers were acting quickly and offering more to beat out other buyers.
When is the busiest time in the real estate market? As you would expect, the peak happens in the March – June timeframe, and in Belmont, we have another mini-spike in the fall. When is the best time to buy? Data shows that January and February are the best times to purchase a home, before the spring market heats up.
The current outlook for 2017 is still quite positive and it is anticipated that the year will start off with strong demand as interest rates begin to slowly rise and many buyers from 2016 continue their home search. If you’ve been considering selling your house, now is the right time to start preparing. Preparing early and correctly means a bigger return on your home.