How’s the Real Estate Market in Belmont?
For this Belmont, CA neighborhood market report, we’ll only look at homes in the Homeview, Sterling Downs and Farralon neighbohoods of Belmont, CA during the time period August 4, 2009 through November 4th, 2009.
Belmont CA Neighborhoods Included in this Market Report
The Homeview, Sterling Downs and Farralon neighborhoods of Belmont, CA are included in this market report. These neighborhoods belong to the Sterling Downs, Homeview and Farralon neighborhood associations.
Boundaries
El Camino Real (west), Chesterton Ave (north), O’Neil Ave (south), City of San Carlos (south)
Factoids About Belmont CA
In May, 2009, Belmont, California was ranked 11th on Forbes list of “America’s Top 25 Towns to Live Well.”
Schools Serving Homeview, Sterling Downs and Farralon
| Great Schools Rating | |
| Elementary School | |
| Central School | 10 |
| Nesbit School | 7 |
| Middle School | |
| Ralston Middle School | 9 |
| High School | |
| Carlmont High School | 9 |
School boundaries change from year to year. To find out the boundaries, visit the Belmont-Redwood Schools School District website, http://brssd.org.
Carlmont High School and Ralston Middle School are located in Belmont and are both Distinguished California Schools.
Let’s Look at the Numbers
Number of homes sold with and without price reductions in Homeview, Sterling Downs and Farralon Between August 4th, 2009 and November 4th 2009.
Note: PR = Price Reduction
| # of Bedrooms | # Sold | # Sold w/PR | Highest Price | Lowest Price |
| 5 | ||||
| 4 | ||||
| 3 | 5 | 2 | $675,000 | $575,000 |
| 2 |
Number of homes sold for more, less or at the original list price in less than 30 days or in 31 days or more.
OLP = Original List Price, the price the home was listed for when it first came on the market
| # of Homes Sold on the Market 30 Days or Less | # of Homes Sold on the Market 31 Days or More | |||||
| # Bedrooms | < OLP | @ OLP | >OLP | < OLP | @ OLP | >OLP |
| 5 | ||||||
| 4 | ||||||
| 3 | 2 | 2 | 1 | |||
| 2 | ||||||
Number of homes on that were taken off the market during this time period. Taken off the market could mean expired, canceled or withdrawn. Exipred is when the listing period lapses without producing a sale, withdrawn or canceled is when the seller decides to remove the home from the market before the time period in the listing lapses.
| # of Bedrooms | # Homes | # Homes w/PR | Highest List Price | Lowest List Price |
| 5 | ||||
| 4 | ||||
| 3 | 4 | 2 | $744,900 | $559,000 |
| 2 |
Number of homes that were taken off the market during this time period that have been on the market 30 days or less and those that have been on the market 31 days or more at less than, equal to or greater than their original list price.
| # of Homes on the Market 30 Days or Less | # of Homes on the Market 31 Days or More | |||||
| # Bedrooms | < OLP | @ OLP | >OLP | < OLP | @ OLP | >OLP |
| 5 | ||||||
| 4 | ||||||
| 3 | 4 | 1 | 2 | 1 | ||
| 2 | ||||||
Pending Sales = Number of homes currently in contract but have not closed escrow yet. The highest and lowest list price reflects the list price the homes were listed for when they accepted a contract. This is not the sales price. The sales price will be known once the properties close escrow.
| # of Bedrooms | # Homes Pending | Highest List Price | Lowest List Price |
| 5 | |||
| 4 | |||
| 3 | 4 | $769,000 | $559,000 |
| 2 |
Number of pending sales that were on the market for 30 days or less and 31 days or more at a price less than, equal to and more than their original list price when they accepted a contract.
| # of Homes on the Market 30 Days or Less | # of Homes on the Market 31 Days or More | |||||
| # Bedrooms | < OLP | @ OLP | >OLP | < OLP | @ OLP | >OLP |
| 5 | ||||||
| 4 | ||||||
| 3 | 1 | 1 | 2 | |||
| 2 | ||||||
Active Listings = Number of homes currently listed for sale on the market
| # of Bedrooms | # Homes | # Homes w/PR | Highest Price | Lowest Price |
| 5 | ||||
| 4 | 2 | 2 | $875,000 | $799,000 |
| 3 | 1 | $649,000 | ||
| 2 |
Number of homes actively listed on the market for 30 days or less and 31 days or more at a price less than, equal to and more than their original list price.
| # of Homes on the Market 30 Days or Less | # of Homes on the Market 31 Days or More | |||||
| # Bedrooms | < OLP | @ OLP | >OLP | < OLP | @ OLP | >OLP |
| 5 | ||||||
| 4 | 1 | 2 | ||||
| 3 | 1 | |||||
| 2 | ||||||
Homeview, Sterling Downs and Farralon Market Report Executive Summary
Homes Sold Between August 4th, 2009 and November 4th, 2009.
- 5 of the 55 (9.1%) of the single family homes sold in Belmont within the last 3 months were sold in the Homeview, Sterling Downs or Farallon neighborhoods
- All 5 homes sold were 3 bedroom homes
- Highest price 3 bedroom home sold for $675,000, 12% less than the highest price previously sold 3 bedroom home in the last 12 months
- 5 of the 26 (19.2%) homes sold within the last year were sold in this time period
- 2 of 5 sold for more than the original list price (OLP); 3 sold for less than OLP
- The median price has dropped to $687,500, an 18.2 % decline from its all time high in the 2nd Quarter, 2007 of $840,000
- 2 of 5 sellers had to reduce their asking price to secure a buyer
- 4 homes sold within less than 30 days
What about Homes that Did Not Sell?
These are homes whose listings were withdrawn, cancelled or expired. The market has rejected these homes based upon their location, condition and price.
- 4 home listings – all 3 bedrooms – were cancelled or the listing expired, and did not sell
- Highest was priced at $744,900, lowest $559,000
Bank Owned Homes (REOs)
These homes were taken back in foreclosure by the bank and sold.
- 1 of the 5 homes sold was Bank Owned (REO)
- REO sold in 11 days for $75,000 more than the original list price of $500,000
- REO was least expensive home sold within the last 12 months in this market area
What Do the Market Statistics Mean to Belmont Home Sellers?
In the Homeview, Sterling Downs and Farallon neighborhoods of Belmont 4 of the 9 homes for sale within the last 3 months were taken off the market. Their asking prices – $744,900 to $559,000 – were not aligned with what the market was willing to pay for those homes in this market during this time frame. Sellers to be successful must recognize that buyers will not make offers on significantly overpriced homes.
Downward pressure continues to affect this market; buyers are looking at other areas of Belmont – previously unaffordable – where the school ratings may be higher and appreciation potential is greater. Buyers typically know the competition better than the seller does, and they act accordingly. Every home that sold in more than 27 days, sold for less than the original list price. 11 of the homes sold in less than 27 days sold for more than the original list price. The message of the market is that home sellers need to price it right to get it sold.
What Do the Market Statistics Mean to Belmont Home Buyers?
As the year to date data shows, demand is high in this area with ¾ of the homes that closed escrow sold in less than 30 days. The reason is the Homeview, Sterling Downs and Farallon neighborhoods are where the bulk of Belmont’s most affordable housing can be purchased. Generally, these homes are older, smaller homes on standard size subdivision lots. The bank owned 3 bedroom home that sold for $575,000 – well in excess of is original list price – in 11 days indicates buyers will compete for value priced homes. As with other parts of Belmont, negotiation is the key to find the lowest price possible. A motivated seller and the right price can best be best discovered by negotiation.
Would You Like More Information About These Belmont Neighborhoods?
Thanks for reading our real estate market report for the Homeview, Sterling Downs and Farralon neighborhoods of Belmont, CA. If you have questions or would like more information about these neighborhoods in Belmont, please contact us at (650) 655-2500 or info[@]RayChelRealtyGroup.com.
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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo County Real Estate.
Tags: Belmont CA
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
With the recent housing crisis in the United States, many investors have seized opportunities to increase their real estate profits through purchasing distressed properties. Many new investors have also discovered that they can obtain properties for less than their market value and realize an incredible profit by reselling them. However, it is by far better to invest in REO properties than it is to purchase real estate via short sale or foreclosure. There are tools which can give the investment value of any given property with ability to predict how much appreciation it achieves in the coming years.
I certainly agree that for the average person buying bank-owned homes (REO) is the best way to go because both short sales and foreclosure trustee’s sales are fraught with uncertainty and hidden complications. REO’s are a more business like transaction. Granted the procedures are biased in favor of the bank, but we are dealing with a purely business decision and a reasonable amount of due diligence can be performed to protect the buyer. We teach an educational program about each topic to inform and educate investors and home buyers about the issues and potential pitfalls. However, banks sell their properties at fair market value, and they are not giving them away. It’s simply the “willing buyer-willing seller concept” at work. In almost every instance the property is worth what the buyer pays in light of the location, physical condition and market activity. Can a buyer over pay? Of course. Is the bank desperate to dump their inventory? Not in San Mateo County.
I do disagree with several things you mentioned. In my opinion:
1. All homes sell for fair market value. A discount is a bargain only when applied to the fair market value of a property. A negotiated purchase price that is less than the asking price for an over-priced home is not a bargain. It’s the negotiated Fair Market Value for the property. If you paid 50 Cents on the Dollar, the property is probably worth 50 Cents on the Dollar.
2. There are no reliable “tools which can give the investment value of any given property with ability to predict how much appreciation it achieves in the coming years.” No one person or tool can predict future appreciation with accuracy or reliability. There are tools that can calculate cash flow, return on investment and depreciation analysis based upon a given set of variables. However, the “garbage in- garbage out” rule applies.
When I hear people talk about “incredible profit” by flipping, I ask who and where and let’s see the details. Lots of alleged real estate gurus are selling “how to do it” flipping packages and making a lot of money. In fact, many of the self-described gurus are making more money selling stuff than from flipping real estate. Ask yourself, if they are making such incredible profits why are they spending their time, money and effort to promote their system when they can be making incredible profits flipping or wholesaleing real estate. All markets are different. Flipping only works for the right person in the right market environment. In my experience San Mateo County is not a flipping market especially if someone expects incredible profits re-selling newly acquired property.. Real estate is by definition an illiquid long term asset. It’s an investment asset not a speculative one. It’s time that makes money in real estate…not timing.
I’ve been a real estate broker for 31 years and during that time I seen or heard just about every so-called guru who has come down the road. If you are interested in an interesting bit of advice go to: http://www.johntreed.com/Reedgururating.html
I think you may find the information useful. And, please attend one of our upcoming programs and introduce yourself. I’d like to get acquainted. Good luck.
Take care and be well.