We are initiating coverage of the Capitola real estate market. Each month, we will look at the activity here and discuss developing trends.
In general, the northern California real estate market has been moving toward a more balanced state. For the past few years, sellers have had the upper hand, as buyers aggressively bid on properties, driving prices rapidly higher. The current market is more normal, with buyers being more discerning and willing to take their time.
In terms of volume, the Capitola real estate market is not large and has averaged less than five closed sales a month for the past year. With that few sales, pricing statistics (averages, medians, etc.) can be very volatile depending on the mix of homes sold (high end versus lower priced). So while we will discuss the current statistics, the longer term trends are more important.
Inventory has been rising here all year, from a low of only eight homes at the end of February to 29 at the end of August. During that same time, pending sales have been steady (between three and five, with the exception of one month).
For the past five months, homes have sold here for about 101% of their list price, on average. The median sales price has ben declining but that was from abnormally high medinas in March and April due to a greater mix of higher priced homes sold. In addition, the length of time homes are on the market has been on the rise, from only nine days in April to 29 days in August.
Median Sales Price
The average sale in August was for 101% of the asking price, up from 97% in July and 99% a year ago. August’s median sales price was $850,000, an 8% increase from $787,500 in July but 23% lower than August 2015’s $1,105,000. The price per square foot in August was $797, up a little from $810 in July but 26% higher than a year ago.
Seven sales closed in August, the second most this year (nine in May). Four sales closed in July and six closed a year ago.
For Sale vs. Pending
Inventory has increased here since bottoming out at only eight homes in February. 29 properties were actively listed at the end of August, up from 22 at the end of July. 22 homes were also available for sale at the end of August 2015. Four sales went to contract in August, unchanged from July and two more than a year earlier. Supply relative top pending sales stood at 7.25 months at the end of August, up from 5.5 months at the end of July. One year ago, we had a 3.7 month supply.
Days to Sell
Homes have been staying on the market longer as buyers are showing a willingness to be patient. The average sale in August was listed for 29 days. While that is down from July’s 34 days, homes sold in May, June and July were on the market for an average of only 15 days. One year ago, homes were listed for 48 days, on average.
Analysis by Price Range
We will look at the market in three separate segments (homes priced under $800,000, $800,000 to $1.3 million, and $1.3 million-plus). Half of all pending sales in Capitola in 2016 and 31% of the average month-end inventory has been priced below $900,000. The $900,000 to $1,299,999 price range accounted for 32% of inventory and 34% of pending sales this year. Homes price at $1.3 million and up made up an average of 37% of the monthly inventory and 17% of pending sales.
Nine homes priced under $900,000 were actively listed at the end of August, three more than at the end of July. Pending sales were unchanged at two. This segment accounted for 31% of Capitola’s total inventory at the end of August and 50% of pending sales during the month. A 4.5 month supply was available at the end of August, up from 3.0 months at the end of July.
$800,00 to $1.3 million
Seven homes have been for sales here at the end of each of the past three months. There have been either one or two sales go to contract each month this year (one in August, two in July). A 7.0 month supply was on hand at the end of August, double July’s 3.5 months. 24% of inventory at the end of August and 25% of pending sales during the month were in this price range.
$1.3 million or over
13 properties priced at or above $1.3 million were actively listed at the end of August, making up 45% of the city’s total supply. Only one sale went to contract during August, compared to zero in July. August’s one sales was a quarter of Capitola’s total.
Check out these other Real Estate Market Conditions Reports for August 2016: