Hillsborough Real Estate - February 2012

Fewer Home Sales to Start the Year

After a torrid early and mid-2011, sales activity has slowed in Hillsborough. Through the first two months of 2012, there have been only seven closed homes sales in Hillsborough. Last year, 20 homes sold in the first two months and in 2010 there were 13 homes sales. An interesting statistical oddity is that from May 2011 to January 2012, the number of homes sold declined successively each month.

Despite the lack of recent sales, inventory still remains low. There were about 50 homes for sale at the end of February 2012, which is actually lower than where the market was at the end of February 2011. It seems that the recent exceptionally low sales figures in December, January and February were driven by a lack of fresh new listings. In October, November and December 2011 combined, only 16 homes were listed, including just one in December.

The next few months should be more telling. There were over 40 homes listed in January and February 2012. Along with the normal seasonal patterns, we should expect to see an uptick in sales. If there is not a healthy rebound it might be a sign of a lull in demand.

Prices Appear Steady

On a 12 month moving average basis, median and average selling values have been relatively flat over the past six months. An average home in Hillsborough will set you back about $2.5 million for about 4,000 square feet (along with the excellent schools, large lots and safe surroundings).

The average price per square foot has been mostly flat at just under $700 for the past twelve months, after rising from a low of $660 in the depths of 2010.

In December 2011 we noted that the ratio of sales price to list price for the four homes was above 100, which suggests buyers bidding above asking prices. We also noted that while this is a possible sign of upward pricing pressure, it was only four homes and only one month, so not enough data to make an informed opinion. Interestingly, the situation reversed itself in the beginning of 2012.  In both January and February the ratio of sales price to list price was close to .9 (or 90%), which suggests sellers dropping their asking prices by about 10% to entice buyers. Because this is only two months and so encompasses so few home sales, we make the same caveats. We need to see a few more months of data to know if this is a sign of weakened demand, a random blip, or just a few sellers overreaching on their initial asking prices.

Thinking of buying or selling a home in Hillsborough?

If you're interested in learning more about the Hillsborough real estate market, considering selling your home in Hillsborough, or thinking about moving to Hillsborough, please drop me a line and I'd love to connect with you.

By The Numbers - Hillsborough Real Estate for 2012