At the six month point we have enough market data to consider the Alamo Real Estate Market in its constituent parts. So, this month we will perform a simple review of Single Family Homes, Condos, Land and Rents to see what is happening in the overall market. A quick glance at the included chart will show you what you need to know. The market continues to be strong this year.
Single Family Homes, the majority of the Alamo Real Estate Market, have advanced 12% year over year in the first six months of 2015. Average price moved from $1,526,255 to $1,714,529 while dollars paid per square foot advanced a little less dramatically at 11.6%. Interesting to note is 6 fewer homes sold so far in 2015 than in 2014. That represents a 6% decrease in unit sales which was already down 15% from the previous year. In the first half of 2014, Alamo saw one distressed property sale. In 2015 that number remains the same. We are starting to see some homes sitting on the market for longer periods of time, suggesting that buyers are becoming picky or sellers are simply pricing their homes above market value.
Town Home and Condo sales dropped from three to two and prices paid were significantly lower. The average condo/townhome is 19% less expensive in 2015 than it was in 2014. However, Dollars paid per square foot jumped 13.8% from about $397 to $452. Alamo is not a big condo market, but it is a very desirable place to live and as the early wave of retiring Baby Boomers enter retirement and begin the process of downsizing we should expect prices to remain firm, even if they don’t advance much.
Land is always the last recovery point in a real estate turnaround. During the first six months of 2014 five Alamo parcels sold. So far this year, three parcels have sold. The average purchase price for the Land has advanced from $890,200 in 2014 to $1,115,000 in 2015. This represents an increase of 25% in average price, and dollars paid per square foot increased by 61%. Undeveloped parcels are difficult to compare. What is most positive is the increase in dollars paid per square foot compared to last year and the average purchase price. Both these numbers are very positive indicators of a market recovery.
Alamo Rents as reported on the MLS service are rising slowly. The average rent paid in 2014 was $5,308 per month. In 2015 the average has increased 1% to $5,354 per month. The dollars paid per square feet increased by 5% year over year to $1.98. Twelve properties appeared on MLS in 2014 compared to a total of 10 so far in 2015. I am beginning to think this market has just about normalized.
The data for the first six months of the year are compelling. The Alamo Real Estate Market is showing continued strength upward and there appears to be nothing on the horizon to push it back down. A flood of available inventory might slow it a bit, but where would it come from? Until, a yet to be identified market force comes into play, we can probably expect more of the same.
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