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Alamo Quarterly Report

ALAMO REAL ESTATE UPDATES – 3rd QUARTERLY ending August 31, 2017

Dear Friends & Neighbors:
This is your Alamo real estate update for the first eight months ending August 31, 2017. The chart at the bottom - below my contact information - presents the sales statistics for single-family detached homes in Alamo, California for years from 2000 to 2016 and for each of the first eight months of years 2014 to 2017.
  • Sales Volume - There have been 138 detached home sales in Alamo during the first eight months of 2017 which, from a volume standpoint, is down a bit from the 146 detached home sales during the first eight months of 2016.

  • Sales Prices - The median sales price for the 138 detached homes sold in Alamo during the first eight months of 2017 was $1,643,500 vs $1,637,500 for the 146 homes sold during the first eight months of 2016 and $1,517,500 for the 135 detached home sales in Alamo during the first eight months of 2015. I should mention that the median price per square foot of living space was significantly higher during the first eight months of 2017 ($550) than it was during the first eight months of 2016 ($493) despite having only a slightly higher median price during the first eight months of 2017. This resulted from a somewhat smaller median home (by approx 247 sq.ft.) being sold during the first eight months of 2017 than the homes that sold during the same period in 2016. This shows us that buyers may be willing to pay essentially the same price or slightly higher for a somewhat smaller home located in Alamo than had been the case in prior years.

  • Pendings - As of the date of this writing, there are 21 detached Alamo homes showing as "Pending". The median list price for the "Pending" homes approximates $1,599,000 with a median size of 3,420 sq.ft and a median price per sq.ft. of $504. The median "Days On Market" for the Pending homes is 19 days. Only 1 of the 21 Pending homes are considered distressed properties.

  • Active Homes - In Alamo, for the most part, there had been between 90 and 150 Active homes on the market at any given time between April 2008 and October 2011 showing an over-inventoried situation producing a soft market during that timeframe. As of this writing, there are 45 detached homes on the market in Alamo (the same amount as at the end of August 2016). Of special note is the fact that the median list price of the "Active" homes currently is $2,500,000 with a median square footage of 4,559 sq.ft.and a median price per sq.ft. of $556.  That means that we continue to have a significant disparity with what is on the market in terms of price and size compared to what has been the sweet spot for buyers of Alamo detached homes. Currently, the level of "Active" homes represents approximately 3 months worth of inventory depending on which period of sales activity you choose as your basis. The 45 "Active" homes have been on the market for a median of 56 days. Only one of the 45 "Active" homes are considered distressed properties.

Summary -  The 45 currently "Active" homes have a median list price of nearly $2,500,000 vs a median selling price of $1,643,500 for the first eight months of 2017 and a median list price of $1,599,000 for the Pending units. That is a significant difference. Time will tell us if the current inventory will sell at those listed levels. As a separate issue, interest rates will continue to be a factor in how the market behaves going forward especially if inflation takes hold down the road which would impact affordability. Many would say that the global economy will also continue to be a major issue to be reckoned with.
Please understand that everything herein addresses Alamo unto itself. The notion of Westside vs Eastside of I-680 sales were not considered in this writing. Other towns and cities may have very different statistics.
If you have any questions or wish to discuss anything contained herein, feel free to contact me - see below. I welcome any comments or dialogue. And, of course, I welcome any referrals.

Brad Gothberg

CA BRE 00964026

J. Rockcliff Realtors

925-998-5151.