September is the New July
The 3rd Quarter in Review
In a surprising twist, the third quarter actually experienced its greatest increase in both new inventory and sales prices during what is typically considered the off-month of September. The number of new condo listings to hit the market in September was nearly 30% greater than the number of new condo listings in either June or July (June and July are traditionally considered the best time to sell). Furthermore, the mean and median selling prices for condos reached their peak in September, NOT June or July. But why did it happen?
Making Sense of the 3rd Quarter
I believe a reason for the September increase was due to unmet expectations for an inventory bump in September. Although we did see a slight increase in inventory for September, the increase was modest. For example, in North Palo Alto the new inventory during our peak month of July was only 9 units. September offered 13 new units that month, and I believe that many buyers saw this as their final opportunity of the year to purchase a condo in Palo Alto before the typical inventory decrease which usually happens during the winter months.
Looking forward
What’s to come? I believe that we’re headed towards an incredibly strong winter selling season for those thinking of selling. Low inventory, pent-up demand and the ever-increasing entry price for Palo Alto single-family homes will be factors that make condos a popular option. With the only slight increase in inventory this September, many buyers who lost out in September will still be out looking for a condo.
I expect that condos being listed and on the market in October and November will see sales prices comparable and perhaps higher than the sale prices we witnessed during the summer months.
Photo credit: Flickr / Barbara
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