We have seen home prices rising over the last six months, and now that the first half of the year has passed, that trend is confirmed by sales statistics.
From January through June the MLS recorded 815 single family home sales. The average price for those properties was $890,625 and the average price per square foot was $506. The lowest priced property was sold at $115,000 and the highest at $9,750,000.
For the comparable period in 2015 we actually saw more single family homes sold – 951. But the average sale price was $783,999 and the price per square foot was $464. The lowest priced property was sold at $135,000 and the highest at $4,850,000.
That $9,750,000 property closed escrow just last month, bringing the average price of a home in June to $909,948. The next highest price paid was $2,150,000. If we remove the top home from the calculation, the average price drops to $855,380. A similar calculation would reduce the six-month average to $879,741, but that still makes the average price more than $100,000 higher than a year earlier.
A major reason for the average sales price increase is the larger number of higher-priced homes sold in the first 6 months of this year as compared to last year. While total sales were down from 951 to 815, the number of homes listed above $1,500,000 rose from 50 to 61.
Is this trend going to continue? Homes over one million dollars are entering the market at a steady clip. But they seem to be staying on the market longer. This could signal a softening in the prices buyers are willing to pay. It is definitely something to keep our eye on as the year progresses.