Friday, July 11, 2014

The Piedmont Update

Well, the strong market continued apace this quarter--in contrast
to reports elsewhere, we had 63 sales this quarter, compared to 42 for 2Q13.  Average
sales price was $1.903 million (usually I stick with median, but this quarter's 
number is skewed up by a few large sales.  Even so, the median was $1.743 million).
 The average price per square foot was $661/sf (appropriately excluding several 
sales which show as $0 for privacy reasons....).  This compares with $600/sf for
 us at the top of the market, and about $635-$650/sf over the course of the past
 year.  So we seem to be at a new plateau about 10% above the previous market highs
(though note that's 10% appreciation over 8 years.......).The average days on market
was 16 (12 was the median).  For hotly contested properties, we're typically seeing
sales on the Friday of the first week, unless the seller commits to a second open
house weekend.Anticipate that the market will remain active as buyers try to get
 into the market before the beginning of school. 
Sales tend to drop like a rock
 through August, however, and then pick up again for about 6-10 weeks after Labor
Day, before the holiday lull sets in.  Yesterday's strong economic data may suggest
that this unexpected window of unusually low interest rates is about to end--as 
rates climb, homes become marginally less affordable--the same buyer can no longer
afford your home as their payment rises. 
Be sure to contact me (Kennedy@MaureenKennedy.Net)
for any additional insights on the Piedmont market, or if your friends, family, 
or colleagues want to buy or sell in the East Bay market.  I've closed nearly $25
million in real estate in the past year, ranging from the most expensive sale in
 Piedmont that was on the MLS to the least expensive home closed in Piedmont this
year.Enjoy the long weekend!

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