Why Are Home Prices Rising North of Montana – Santa Monica Homes for Sales

Taking a closer look at the data: Median Sales Price - The median sales prices peaked last month at just about $3.07 million, the highest it's been in quite some time. (Source, AltosResearch)

As we enter into Spring 2012 we are seeing that home prices are rising in Santa Monica’s most desirable neighborhood, “North of Montana.” There are several reasons to attribute to the uptick in listings and sales prices in Santa Monica 90402. Let’s get right into them:

Number 1: Franklin School District

Franklin Elementary School, located at 2400 Montana Avenue,  has long been heralded as one of the best K-5 schools in all of Los Angeles County. It is among the few public elementary schools in California to receive a distinguished GreatSchools Rating of 10 out of 10.

I’m proud to say that I was once a Franklin parent. It was the only school my husband and I would place our son in. Time sure does fly though. Now he’s 16, learning to drive (I cringe) and growing up so fast. Remember to savor those precious moments with your kids, people. Okay, I’m getting sidetracked. Back to why the “North of Montana” real estate market is heating up.

Thin pickings by the numbers...

Number 2: Lack of Inventory

Now when I say low inventory, I mean low inventory. It’s thin pickings out there. Properties are getting swooped up off the market fast. Low inventory historically boosts sales prices because there is few and far between options for buyers to pick from.

3. Low Interest Rates

We are experiencing record low mortgage interest rates in the housing market. Remarkably low. This creates a larger buyer pool going after a very small piece of real estate pie. A very sought after piece of pie.

And that’s about it in a nutshell folks: a school so excellent that parents are willing to relocate their families for the opportunity to send their kids there – coupled with low inventory and increased demand and bam! High prices! High sales!

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