San Mateo County Real Estate - March 2012
Inventory Plummets
The inventory of for-sale homes has a normal seasonal pattern, reaching a peak in the summer and a trough at the end of the year. In each of the nine years from 2004 to 2011, inventory rose in the first quarter of the year (see columns in black). 2012 has been quite different. Inventory has fallen in each of the first three months of this year, to the lowest level since 2005.Many qualified buyers are having trouble finding good homes to buy. Unless there is a surge in new listings in the next few months, restless buyers may increase competition driving up prices.
Sales Activity Continues to Climb
2012 home sales continue to outpace 2011. Through the first three months of the year, there have been just over 1,000 homes sold, versus just under 900 homes sold in the same period last year. At the current rates, sales activity would be the highest since 2005.Impressively, while sales are continuing their ascent, the number of new listings coming onto the market has fallen sharply (hence the decline in inventory). Through the first three months of the year, the number of new listings is down 15 percent compared the same period last year. In fact, listings activity is at the lowest pace since at least the middle of last decade. Perhaps sellers feel that the market has hit bottom and want to hold on for higher prices.
Price Trend Reversal
Lower inventory is often a catalyst for rising prices as buyers have to compete for a smaller supply of homes. Although there are certain strong submarkets, to-date we have not seen across-the-board increases in selling values in San Mateo County. However, the data does suggest that the gradual decline in median selling values and average price per square feet from late 2010 to late 2011 has stopped. Our 12 month moving average price indicators suggest mostly flat price levels over the past three to six months.Average selling values remain above $900,000. Median selling values are below $700,000. The fact that average selling values are so far above median selling values signals that there are a fair amount of ultra-expensive homes in San Mateo County. With areas like Hillsborough, Burlingame and San Carlos, this should come as no surprise.
Thinking of buying or selling a home in San Mateo County?
If you're interested in learning more about the San Mateo County real estate market, considering selling your home in San Mateo County, or thinking about moving to San Mateo County, please drop me a line and I'd love to connect with you. Raziel is an expert in Burlingame real estate, San Mateo real estate, and Hillsborough real estate.By The Numbers - San Mateo County Real Estate for 2012
| Current Month | YTD Total or Average | |||
| March 2011 | March 2012 | Jan - Mar 2011 | Jan - Mar 2012 | |
| Sales | 392 | 464 | 895 | 1,015 |
| Days on Market | 55 | 56 | 61 | 61 |
| Months of Supply | 3.7 | 1.5 | 4.7 | 2.4 |
| Average Price | $963,000 | $940,000 | $879,089 | $849,192 |
| Median Price | $685,000 | $690,000 | $630,162 | $626,219 |
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