In my last report, it was clear that a slight market shift or market correction was evident when comparing January and February 2016 sales data versus all of 2015.The Q1 2016 sales data was just released by SAMCAR and similar trends are continuing to show a slight correction in the marketplace. Here are a few highlights by housing category. The trends that should send up red flags to me are highlightedin yellow.

Single Family Homes:

Days of Market: 31 day or almost 30% longer compared to 2015
Median Sales Price: Down 6%
Price pre Square Foot: Slight increase by 2.59%
% Of List price Recv’d: Down almost 2%
Monthly closed transactions: 239 versus 359 in 2015, down 33.4%

Condos:

Days of Market: 24 days or 20% longer compared to 2015
Median Sales Price: Up over 6%
Price pre Square Foot: Also up 6%
% Of List price Recv’d: Down almost 2%
Monthly closed transactions: 92 versus 118 in 2015, down over 22%

The Big Take Away

Buyers should be dancing in the streets, as some sanity may be entering the equation. To be clear, there is no major market implosion afoot, so buyers should not get to over-confident. Pretty house on pretty streets in great school districts will always sell quickly. However, combine these current shifts with historically low interest rates and buyers should be in turbo-mode, visiting as many properties as possible as they may finally be moving towards the drivers seat. Do it now before the Fed raises rates this summer.

Homeowners should be seriously considering selling strategies before the upcoming summer slow-down. One such strategy is how to defer capital gain tax and I have resources to assist with that. To be clear there is no imminent real estate market crash, however one must ask if the current market shift represent the calm before the storm(?). Some industry pundits have predicted a market correction of as much as 20% in 2016. At a current average selling price of $1.2M for a single family home, that could be as much as $240K out of your pocket if those predictions come true. As a seller, do not forget that the Fed has also promised to increase interest rates by the summer which will make all homes more expensive to buy, thus possibly slowing the market even more.

I trust you’ll find this information useful, and I encourage you to share it with friends, family and colleagues. Let’s meet soon to discuss your current and future real estate aspirations. Whether a seller or buyer, I will put you in the best possible position to maximize your investment(s), contributing to your immediate and long-term wealth.

Dino Virella

PENINSULA Sales Data & Charts April 2016-2PENINSULA Sales Data & Charts April 2016-3