The level of available inventory in the Burlingame real estate market, which has been falling since 2010, has reached historically low levels. At the end of February 2013, there were 13 unsold homes, compared to 42 homes for sale at the end of February 2012. Inventory is even lower than 2004 and 2005, during the height of the frenzy of the prior real estate boom.
Low inventory is contributing to rising prices as buyers compete over a dwindling supply. Looking at a 12 month moving average, which smooths out the random monthly fluctuations, prices appear to be up 10-15% over the past year. Overall, selling values have returned to where they were near the end of 2008/early 2009. If the 2013 experience mirrors 2012, by the end of the year selling values should be at or slightly surpassing the previous highs seen in late 2007/early 2008.
After a blip down in January, the average sales price to list price ratio surged in February 2013 to 104.5%, the highest level since August 2005. While one very high monthly reading is interesting, what is more important is that the ratio has been regularly above 100% for the last 12 months. A ratio above 100% is a sign that buyers are regularly bidding above asking prices. It is also another sign that prices are continuing to rise. List prices are normally set based on recent comparable sales. If sale prices are above list prices this suggests that the most recent sales are going for a higher valuation than past sales.
Sales Activity Strong Again in February
There were 12 homes sold in Burlingame in February 2013. In the first two months of the year, there have been 22 homes sold, as compared to 16 sales in the first two months of 2012. In 2012, 270 homes sold, the most in any year since 2005, and well above the recent low of 2008. While the strong start to 2013 would normally point to another year of rising sales, simple math dictates that because of low inventory, sales will be lower in 2013, unless there is a flood of new listings. So far, this has not been the case. Only 30 homes were listed in the first two months of the year, down from 48 homes in the first two months of 2012.
Recent Home Sales in Burlingame
Below is a selection of recent Burlingame real estate sales, sorted by area of Burlingame. These recent sales exemplify what is happening because of our low inventory.
Of the 10 sales listed below, 6 were on the market for 11 days or less, and 4 were on the market for 50+ days. There were no sold homes that were on the market for between 11 days and 54 days. Most listings are selling very quickly, often with multiple offers and significantly above the asking price. However, some listings do not sell immediately, often because there is something unique about the house that diminishes the value in the eyes of most buyers. It might be outdated, in need of significant repair, an odd layout, or in an odd location. These types of listings can sit on the market for some time.
In the current market, a higher percentage of homes are falling into the "sell quickly" category. Because of stiff competition buyers are more willing to look at homes that in another market environment would be too imperfect for them. At the same time, existing inventory of the type of homes that regularly sit on the market is being normally depleted, but then not replenished as so many new listings are selling almost immediately. The end result is incredibly low inventory.
To see all of the latest Burlingame neighborhood specific market updates, click here.
By The Numbers - Burlingame Real Estate for 2013
|Current Month||YTD Total or Average|
|February 2012||February 2013||Jan - Feb 2012||Jan - Feb 2013|
|Days on Market||37||47||48||44|
|Months of Supply||6.0||1.1||4.8||1.2|
|Avg $ per Sq Ft||$618||$705||$617||$702|
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If you're interested in learning more about the Burlingame real estate market, considering selling your home in Burlingame, or thinking about moving to Burlingame, please drop me a line and I'd love to connect with you.