San Mateo Real Estate - April 2012

Inventory Falls Further

Last month, we noted that the City of San Mateo real estate market was becoming increasingly inventory constrained. The trend continues in April 2012.  The typical seasonal pattern is for the inventory of unsold homes to peak in the summer, when most sales activity occurs and trough in the winter holiday period. Instead of increasing to start the year, as it has in most prior years, inventory continues to decline in San Mateo. (In the chart below, the first four months of every year are shaded black to make it easier to see the seasonal pattern). There were less than 70 homes for sale in San Mateo at the end of April 2012, the lowest April total in many years, and the lowest total in any month since March 2005. At the end of April 2011 there were 162 homes for sale, so each buyer now has less than half the number of homes from which to choose!

Sales Activity Continues to be Strong

Through the first four months of 2012, there have been 192 homes sold, as compared to 166 homes sold in the first four months of 2011. At the current rate, there would be just under 700 homes sold in San Mateo in 2012. There hasn't been more than 600 homes sold in a year since 2006. Higher sales have been a contributing factor to lower inventory. Another factor is that there have been fewer new listings. In 2011, new listings were down seven percent from 2010. So far in 2012, they are down another nine percent.

 

One Sign of Firm Pricing

Through the first four months of 2012, the average home sold in San Mateo did so for the same as its asking price. Put differently, the average ratio of sales price to list price has been 100%. It was below 100% each year from 2008 to 2011, a time that was characterized by flat/falling prices. A ratio at or above 100% signals that buyers are not routinely successfully bidding below asking prices.  Indeed, the number of homes with multiple offers and offers above asking prices has increased in recent months. This is likely due to the combination of steady demand and a dearth of supply on the market.

Average selling values, median selling values and average prices per square feet have all been fairly flat in 2012. Measuring trends in selling values in the San Mateo real estate market can be difficult because of the wide range of neighborhoods. When homes in some areas sell for less than $500,000, while others are well above $1 million, a random shift to more homes selling in one type of neighborhood versus another can impact average and median selling values.

Thinking of buying or selling a home in San Mateo?

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

By The Numbers - San Mateo Real Estate for 2012