Venice: Home Sales Report As of Feb 28, 2015 – Low Inventory. 10% Year Over Year Appreciation.

This month I have made a quarterly comparison relative to how real estate is trending in the general Venice area.  The results below are for the most recent quarter, December 1, 2014 through February 28, 2015.  I have indicated the extent to which they increased or decreased as compared to the same quarter last year, December 1, 2013 through February 28, 2014. What is striking is the following:

1. Inventory remains low.  Less homes are for sale this year than the same period last year.  20% less.  In most communities, the shelf is bare.  Only a 3.3 month supply (6 months is considered a balanced market).
2. Sold Prices are up about 10%.
3. Average days on the market, 2 ½ months for the homes which sold.
4. 95% was the sold to list price ratio of the sold homes.

What this means to you:  Continued low inventory is continuing to drive price increases.  The laws of supply and demand.  However, resistance will be met if the list price is greater than 95% of fair market value.  It is also worth noting that we are not experiencing runaway price increases.  And I see no evidence of a boom which would foretell another bust.  Although we have recovered about 35% from the housing recession bust of 2007, we remain 30% off the peak.  So, we still have plenty of room for upward mobility, and in a continued low interest rate environment, housing remains affordable.   Quarterly Home Sales Results Dec 2014 – Feb 2015 compared to Dec 2013 – Feb 2014   Homes for Sale:  Current quarter, on average, 593 units.  Down 20.6% from same quarter last year. New Listings:  Current quarter, on average 246 units.  Down 2.8% from same quarter last year. Sold:    Current quarter,on average 142 units.  Down 5.3% from same quarter last year. Pended:  Current quarter, on average 182 units.  No change from the same quarter last year. Average Price per Sq. Ft:  Current quarter $142.40/sq. ft.  Up 10.2% from the same quarter last year. Average Days on the Market:  Current quarter 76 days.  Up 8.6% from the same quarter last year. Sold to Final List Price Differential %:  Current quarter is 95% sold to list price %. Up 1.1% from same quarter last year. Median Sold Price:  Current quarter is $195,000.  Up 14.9% from the same quarter last year. Average Active Price:   Current quarter is $345,000.  Up 26.8% from the same quarter last year. Average Sold Price:     Current quarter is $225,000.  Up 9.8% from the same quarter last year. Months of Inventory Based on Closed Sales:  Current quarter 4.2 months.  Down 16.1% from the same quarter last year. Months of Inventory Based on Pended Sales:  Current quarter 3.3 months.  Down 19.5% from the same quarter last year.