Brentwood Real Estate 2012 Recap!

Shared by Jodi Marfia, Associate Broker, Sharp Realty

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I saw a recent Wall Street Journal front page article quoting a study that showed home values in 20 major cities rose 4.3% in the past year.  While it’s interesting reading, it’s not really relevant to your home’s value.

 

ALL REAL ESTATE IS LOCAL
Do values in New York City or Chicago have any bearing on your home’s value? No, and be thankful; they were down in value. How about San Jose and San Francisco? A little. As the prices rise in the Bay Area’s larger metropolitan cities, becoming less affordable, some people move to Brentwood with our much more attractively priced homes, thus increasing demand and pushing prices up.

 

BRENTWOOD HOUSING RECOVERY STRONGER THAN NATIONAL AVERAGE!
In my analysis of all Brentwood home sales I found that Brentwood home prices rose by 17% over the past year, from an average price of $301,400 in November 2011 to $352,500 in November 2012. The demand for homes remained consistent throughout the year with an average of 90 sold homes each month, compared to 92 homes sold per month in 2011.

 

WHY SUCH HIGH APPRECIATION?
A number of factors have combined to drive up prices. First is the dramatic drop in the number of homes for sale. On 1/1/2011 there were 208 homes for sale, on 1/1/2012 there were only 158. Today, there are only 46 homes for sale. Second, interest rates remain at near historical lows, under 4%. Third, owning a home in Brentwood at current prices & interest rates is very affordable (much less expensive than renting). Fourth,    Brentwood remains a desirable area to live and raise a family. This creates demand among both first time buyers and investors. The bottom line is that we have a severe supply and demand imbalance. With less than a one month supply of homes currently available for purchase, most homes are getting multiple offers, usually over asking price.

 

WHAT WILL HAPPEN NEXT?
I predict that inventory will remain low and demand will stay high, so homes will sell quickly and at higher and higher prices. I will actually be surprised if we do not experience appreciation of greater than 15% in 2013, helping some of us return to having equity in our homes.

 

BRENTWOOD SALES AND STATISTICS

This chart shows the dramatic 66% drop in homes for sale in Brentwood throughout the year.

 

Bank foreclosures have dropped the most, 84%, short sales have dropped by 76% and regular sellers (those with equity) have dropped by just over 50%. With this shift throughout the year, we are now in a position where over 65% of sellers are regular sellers with equity.

 

As you can also see, average quarterly sales prices increased each quarter throughout the year, a trend I expect to continue.

 

 

Jodi Marfia

 

Jodi Marfia

Sharp Realty

925-354-8919

jodi@dreamhomesbyjodi.com

www.dreamhomesbyjodi.com

 

This article is shared by Jodi Marfia on January 2013 so some information may be outdated after some time. It is posted as an informational and promotional piece by Jodi Marfia and does not necessarily reflect the opinion of the publishers at EverythingBrentwood.com.