November 25, 2009

PREVIOUS POST
Belmont Housing Market Report for November 2009 Well it’s another one of those tricky months where the numbers tell an inaccurate story when it comes to the value of Belmont homes. (Click on the graphic for a full size view) MEDIAN HOME PRICE Looking at the raw numbers, the median home value in Belmont dropped from $912,500 last November to $784,000 this year. That’s a whopping 14% decrease but wait—let’s look at what really happened. This November Belmont had three short sales which greatly impacted the results. More importantly was that the majority of the homes sold were much smaller than they were last year. Larger homes sell for less per square foot (since land is a constant). Therefore if many smaller homes sell in a given period the price per square foot statistic will rise while the median home price will fall. Watch for this inversely proportional relationship to guess when there might be more to the story than meets the eye. The median size Belmont home which sold in 2008 was 2095 Sq. Ft. and only 1568 in 2009. The difference of 342 square feet multiplied by the smaller price per square foot median of $488 last year means the adjusted median home value in Belmont this November would be $950,000, or an increase of 4%. NUMBER OF SALES The most impressive statistic is the number of sales which at 22 almost tripled from 2008. That speaks volumes as to consumer confidence in the local market. If sales were up because values were dramatically depressed,...

Drew Morgan

Sponsored by Drew & Christine Morgan"Helping People Make Good Decisions"smReal Estate Sales and ConsultingCarlmont Associates

Steve Martin
The Typepad Team

Recent Comments