The Combs Team Presents: Danville Single Story Versus Two Story, Which is Better?
It’s been a couple of years since we looked at the difference between one story and two story homes. At the time I concluded that both were doing just fine. They still are.
In Danville 28% more two stories sold than one stories during this time period. That’s a decline from 2 years ago when two stories were leading by 33%. Suggesting strongly that our market is moving toward a more normal balance.
Forty-six single story homes sold versus 81 two story homes. The least expensive Danville single story sold for $800,000 at $19,000 less than asking price. The least expensive Danville two story home sold for $835,000 at $36,000 more than asking price. The most expensive single story sold for $2,027,000 at $173,000 less than asking price. The most expensive two story home sold for $3,025,000 at $170,000 less than asking price. So, at the bottom of their respective price ranges, the two stories sell for more dollars and at the top the two story homes sell for more dollars. For each type of home there seems to be a great deal of room for negotiation.
On average, single story homes in Danville are selling for $1,186,688 while their two story counterparts are commanding an average sales price of $1,323,454, making the single story approximately 12% less expensive than Danville’s average two story home.
In real estate size is very important, so if we look at the difference in size between the homes in the two groups, we find Danville single story homes to be quite a bit smaller. Single story homes average 2,149 square feet compared to the two story’s massive 3,057 square feet, making the Danville two story home 42% larger than the single story but only 12% more expensive.
Despite the size differential both types of home are selling in no more than a month’s time. Single story homes are selling on average in 18 days while the two stories are selling in 31 days. Clearly, single story homes are selling faster than the two story homes. The sales pace of each proves that Danville is still a hot market. That said, a number of homes in Danville have been on the market in excess of 100 days, otherwise the days on market would be significantly less than a month’s time. One two story home has been on the market for 350 days as of this writing.
On the basis of price, it may appear that the Danville two story home is dominating the single story. However, when we adjust dollars for size we see a completely different picture. Danville single stories are selling at $571 per square foot compared to $439 per square foot for their counterparts. This is a significant difference of $132 per square foot, or 30% in favor of the single story. So, foot for foot, the single story homes in Danville sell for a lot more money.
Single story homes are up in price by about $33 per square foot from 2016. The price per square foot for the two story is up also, but only by $10 per square foot. Interesting, is that this year the average single story that sold was 223 sq. ft. smaller, so actual dollars paid last year were more by $5,900. I doubt this anomaly means anything significant since the price per square foot has increased by 6% in that time frame.
In our Danville market, we are noticing a phenomenon we have never experienced before. Both Baby Boomers and their parents, two generations, are downsizing at the same time. This large move down, is putting a lot of positive pressure on the single story homes and may be exerting a bit of negative pressure on the larger two story homes. I’m guessing this out of balance situation will continue until the Millennials begin hitting their peak earnings years, which should begin around 2020 and continue on for another ten years. Who knows, we may then experience a greater boom than we experienced in the nineties when the Boomers went on a home buying spree that sent real estate soaring.
Trying to figure out your next move? Need numbers and answers to your fix up questions to make your decision? Nancy and I will be happy to provide you with a personal consultation to help you figure it out. No charge and no pressure just our honest opinions. Please call 925-989-6086 or send me an email firstname.lastname@example.org.