Did West Galt Home Prices REALLY Drop 2.5%?

Cliff Rego
Published on January 21, 2016

Did West Galt Home Prices REALLY Drop 2.5%?

Per the year end stats from the Cambridge Association of Realtors, in 2015 the Cambridge real estate market had a record year in terms of volume ($1.1 BILLION in total sales) and saw solid, steady appreciation in home values at 4.2% growth. Encouraging numbers for local homeowners, no doubt.

So how is it possible that the average selling price in West Galt dropped 2.5% in 2015?

Primary Year Sale Price, Average Sales, Number of
2014 $358,321 315
2015 $349,514 346

Source: Matrix OnRegional Sales Stats for West Galt, Single Family, Freehold

The overall # of transactions rose by nearly 10%; more transactions should strengthen the validity of the average. We weren’t convinced – so we took a closer look:

When you break out the sale price averages by price range, you start to see more specific trends within the West Galt market:

Price Range

’14 # Trans

’14 Avg Sale $

’15 # Trans

’15 Avg Sale $

$0-$199999

17

$182647.00

20

$181405.00

$200000-$299999

117

$249230.00

115

$252522.00

$300000-$399999

90

$347197.00

123

$348907.00

$400000-$499999

52

$442554.00

49

$449481.00

$500000-$599999

19

$545300.00

24

$545854.00

$600000-$699999

8

$632375.00

12

$644000.00

$700000+

12

$910500.00

3

$751667.00

(Source: Matrix OnRegional 2014 and 2015 Sales Stats for West Galt, Single Family, Freehold)

BINGO. West Galt has its fair share of high-end properties; in 2015, few of them sold relative to 2014:

  • 75% fewer home sold over $700000 in 2015 vs. 2014
  • And, homes sold in the 700k+ range in 2015 sold for an average of 17.5% less than those in 2014

 

When you remove sales over $700000 for both years (less than 1% of transactions in 2015), the average selling price in West Galt actually rose 2.8% in 2015 vs. 2014. (I think I just heard a collective *phew* from residents of West Galt.)

The Takeaway:

Sale price averages, for the most part, serve as a general gauge of the overall health of your local real estate market. BUT, simply applying that average increase to your home’s value may yield misleading results.

Even the deeper analysis above, while helpful in understanding what’s really happening in the West Galt market, doesn’t tell the whole story when it comes to what your specific home is worth. To get an accurate home value, you need to compare apples to apples (homes like yours) as well as look at recent trends and evaluate current, active listings. A thorough analysis by an experienced Realtor is the best way to “know what you’re worth.”

If you would like to know what your home is worth, call us today at 310-REGO (7346) or click here to request a Free Home Evaluation. Whether you are planning on selling or just curious, we’ll provide you with a REAL number free of charge.

Did West Galt Home Prices REALLY Drop 2.5%?
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