Alamo is not only a wonderful place to live and raise a family, but it’s also a great investment opportunity. Location, location, location as they say. As I compare homes for sale in Alamo with the surrounding towns, I see great value in Alamo real estate.
We opened the year with only 23 homes on the market, but the inventory climbed steadily, reaching a high of 72 last week. Today we have settled back to 65.
Considering that these inventory numbers represent a vast price range (from a low of $734,000 to a high of $42 million), this is very low inventory for buyers. If a buyer is looking between a million and $1.5, there are only 11 homes on the market. Or only 15 homes to choose from for shoppers looking between $1.5 and $2 million.
Looking at the Alamo market and comparing this year so far with last year, it is interesting to see that more homes sold last year – but this year has a higher price point and fewer days on market.
YTD this year: 57 homes sold with a median list price of $1,435,000 and median sales price of $1,410,000. Of those 57 sales, 40 (70%) sold at list price or above. The average days on market was 25 (and the median DOM was only 11).
Over the same time frame last year: 78 homes sold with a median list price of $1,367,500 and a median sold price of $1,364,250. 38 of these homes (39%) sold for at or over the list price, and the average days on market was 37 (or 14 for the median DOM).
Statistics indicate that this year is a better market than last year—which is saying a lot since 2014 was a hot market. Both years have been strong! Sellers should feel confident that it’s a good time to sell; but buyers can feel good about purchasing a home in an area that is currently under-valued compared to the rest of the Bay Area – time will tell, but I think the Alamo market is a wonderful investment opportunity.