The Multiple Listing Service is our most efficient means to sell a home and the most reliable source of local real estate market information. The following information was take from our local MLS and is deemed reliable but not guaranteed.
According to our local MLS provider (ProMLSlistings.com), there currently are 101 single family homes for sale in Mountain View. Of these, 35 are under contract. That leaves us with 66 homes that are actively being market for sale on the MLS.
Below is the listing and sales activity for single family homes in Mountain View for the first six months for each year since 2005.
As one can see, over the last four years, listings have averaged 233 and sales have averaged 151. However, there continues to be a downward trend for both listings and sales. In the first six months of 2008, the number of listings is right at its four year average (233). The number of sales is off by approximately 24% over their four year averages. How has this overall decline in sales affected Mountain View real estate values?
In a word (actually two words), not much! The graph below depicts the year over year sales prices (first half of each year) for single family homes in Mountain View over the last four years.
As one can see, both the median and average sales prices have gone up until a slight drop for this year. Although the year over year increases aren’t the large scale ones we saw from 1997-2000 or 2003-2005, they are trending in the right direction. This year we have seen a higher percentage of entry level homes in Mountain view sold versus the higher end or west of El Camino Real homes.
An interesting footnote to these sales stats is the fact that the average sales price to list price ratio has also declined over the last four years. In 2005, The average sales price to list price ratio was 106.63%. In 2006 it was 101.98%. In 2007, 104.42% and in 2008, 100.77%.
The first half of 2008 has not been as bad as many had predicted. Although we have been fairly insulated from the problems associated with short sales and REO’s, we are seeing more of them in Mountain View, especially east of El Camino Real. The on-going problem is finding lenders who aren’t afraid to loan money to qualified buyers.
This year’s market will continue to be driven by the first time Mountain View home buyer and those who want to move up. These are the two markets that appear to be the most active. Short sales will continue to have a slight downward pressure on sales prices east of El Camino Real.
We are seeing multiple offers on the few homes available west of El Camino Real and those neighborhoods that are within the Los Altos School District. As always, pricing strategies and how one prices one’s home for the market is extremely important.