Signs are pointing to a cooler housing market in San Marino this week, yet the numbers are mostly holding steady so far. A look at Altos Research Real-Time Real Estate Data shows us that the median list price in San Marino is $1.775 million. The asking prices are holding steady at about an average $715 per square foot.
But we are seeing a surge in how long properties are staying on the market, which is generally a bad sign for sellers. Two weeks ago, the average number of days properties were on the market was at 88. This week, it is at 102. The longer homes are on the market, the more we will start to see price reductions as sellers become more desperate to sell their homes. The percentage of properties with a price decrease has not yet shot up; it’s at 18 percent this week.
Despite these cooling-off signs, the data shows us that San Marino’s housing prices are on a strong upward trend. And, in fact, the median list price has gone up slightly since two weeks ago, from $1.725 million then to $1.775 million now. My best theory for why this is happening is that newer, larger homes are being listed – meaning they come with higher prices, and thus can make it look like market values are rising, when in fact, it is simply that higher-value inventory is joining the market. Take a look at San Marino real estate listings; you may see more larger and younger homes listed than in the past.
Supply and demand is a driving factor for any real estate market. When supply is too high and demand too low, you end up with houses lingering on the market and price reductions to move them. When demand rises, sellers have more room to negotiate for more money and to sell their homes more quickly.
In real estate, we have a market action index, which measures the number of sales vs. the amount of inventory and provides a score. A score of 30 or higher means it’s a seller’s market, which of course, means properties are moving more quickly. A score under 30 puts the advantage in the buyer’s corner.
San Marino continues to be a buyer’s market, but a relatively healthy buyer’s market with a Market Action Index score of 25.8. That score is on a strong downward trend, though. It was at 26.2 just a couple of weeks ago. So, we could begin to see more side effects to the market cool-off in coming weeks.
If you are planning to list your home, I’d recommend doing it sooner rather than later – unless you want to wait a good long time for the market to bounce back into a seller’s favor. While the trends are not as positive as they could be, we’re still seeing a good price trend in San Marino. Don’t wait until those prices begin falling before you make your decision.