Verrado April closings – According the Multiple Listing Service (MLS) 21 homes closed escrow in the month of April. This is up from 17 in March (I had reported 18 in the March post, however, one closing moved to April). Distressed properties were up with 9 verses 6 in March. Builder existing spec inventory continues to diminish as the builders take more orders for newly built homes in lieu of building specs. April saw 3 spec sales verses 4 in March. Traditional sales continue steady with 9 sales verses 8 in March.
Price per square foot softened in April with an average price per square foot of $84 while the mean price increased to $220,000 from $200,000. We are seeing more of the larger higher priced homes starting to sell. This will help to bring up mean prices but can also have a downward affect on price per square foot as the bigger homes usually sell at a lower price per square foot. The increase in distressed property closings this month also brought down the average price per square foot for the month.
One interesting note is that homes seem to be priced to sell as the difference in list price and sales price continues to dwindle. Now down to less than 1.5%. With today’s list of 36 Pending sales at average list price of $92.96 per square foot, it is likely that we will see price per square foot rise again in the coming 30 to 45 days. If closing prices stay within 3% of list price then price per square foot should average around $90. As of today there are 48 listings on MLS, however, 10 are homes that are built to order and not started. With actual inventory at 38 and 21 closings in April that would be less than 2 months supply of existing inventory. It will be interesting to see where pricing heads over the next several months.
Time will tell. What do you think?