Verrado February closings – According to the Multiple Listing Service 25 homes closed escrow in the month of February. Nine were distressed sales (bank owned and short sale properties) while 16 were traditional sales. Of the distressed sales 4 were bank owned and 5 were short sales. The traditional sales were split 50-50 between 8 new builds and 8 resales. The average price per square foot sold came in at $87.01 for all sales, up from last year’s overall average of $82.66. Meanwhile in February distressed properties averaged $78.87 a square foot.Traditional sales, including resale and builder specs averaged $91.59 for the month.
Meanwhile, current inventory as listed on MLS has been hovering around 50 Active listings. However, as many as 15 of these listings are homes that have not started construction.They are listed as “To Be Built”. Based on the actual current inventory and February closings of 25 homes equates to less than a 1 1/2 month supply of inventory. Just a few weeks ago on February 2nd I calculated a 2.8 month supply of existing homes based on the average absorption rate of 15.5 homes closed per month over the prior six months. If demand continues to rise and supply continues to fall we should see more upward pressure on pricing. It will also continue to be difficult to find existing resale and builder inventory which should result in more new home construction.