Steady Market Continues
The fairly equal equilibrium between buyers and sellers continues in Hillsborough. There were 15 homes sold in the month of August 2012. Through the first eight months of 2012 there have been 102 homes sold in Hillsborough, down slightly from 109 homes sold in the same period in 2011. Even though sales are down from 2011, the Hillsborough real estate market is still on pace for 130 transactions, which would be more than any of the five years from 2006 to 2010.
Relative to historical standards, there is still a decent amount of inventory available for sale. There were just over 50 unsold homes on the market at the end of August 2012, just slightly below the five year average. Some nearby areas like Burlingame, San Carlos and San Mateo have inventory levels that are 50%, or even 70%, below the recent five year average.
Homes that end up selling in Hillsborough usually spend more time on the market than in neighboring Burlingame and San Mateo. The average days on market in Hillsborough has been about 2 months, as compared to just over 1 month in Burlingame and San Mateo. One reason is the smaller pool of buyers in the ultra-premium Hillsborough market. Another reason is that a few percentage points in an offer or counter is a big deal. With homes regularly selling for $2 - $3 million, just a couple percentage points can be significant.
Firm Pricing, Perhaps an Uptick
Looking at prices on a 12 month moving average suggests flat price levels. However, we may be seeing some uptick in recent months. In each of the past five months, the average price per square foot for Hillsborough homes has been at or above $700, average $738 over that time period. While it is not atypical for that number to be above $700 in any given month, we have not seen it sustained for more than two months in a row since early 2009. For the year so far, the average price per square foot has been $719. This is higher than 2009 ($684), 2010 ($679) and 2011 ($701), but still well below the peak in 2007 ($791).
It is still too early to see a change in pricing by looking at the average and median selling values. In a short timeframe in a small area like Hillsborough, those values will be more impacted by what types of homes happen to be selling, rather than changes in the underlying price level.
By The Numbers - Hillsborough Real Estate for 2012
|Current Month||YTD Total or Average|
|August 2011||August 2012||Jan - Aug 2011||Jan - Aug 2012|
|Days on Market||49||64||59||58|
|Months of Supply||4.3||3.5||4.4||4.4|
|Avg $ per Sq Ft||$684||$754||$707||$719|
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.