Buyers Face Competition for Dwindling Supply
The City of San Mateo real estate market is becoming increasingly inventory constrained. 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. Sure enough, in the latter half of 2011, inventory declined down to 99 homes in December 2011, which was the first time it had been below 100 since early 2007. Instead of increasing to start the year, as it has in most prior years, inventory continued to decline. (In the chart below, the first three months of every year are shaded black to make it easier to see the seasonal pattern). There were less than 75 homes for sale in San Mateo at the end of March 2012, the lowest March total in many years, and the lowest total in any month since January 2006.
Sales Pace Ahead of 2011
Through the first three months of 2012, there have been 134 homes sold, as compared to 118 homes sold in the first three months of 2011 (and 2011 ended up as the the year with the most sales 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 seven percent. 
Recent Price Signals Stronger than 2011
Average selling values, median selling values and average prices per square feet all fell about five percent in 2011. However, in recent months, these declines appear to have stopped. The 12 month moving average trend lines in the chart below all show flat or upward movement in the past few months.Given the lack of available inventory in the San Mateo real estate market, we would expect pricing to remain firm as buyers have more competition and sellers have less competition.
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
| Current Month | YTD Total or Average | |||
| March 2011 | March 2012 | Jan - Mar 2011 | Jan - Mar 2012 | |
| Sales | 54 | 63 | 118 | 134 |
| Days on Market | 35 | 40 | 50 | 48 |
| Months of Supply | 2.6 | 1.1 | 3.6 | 1.9 |
| Average Price | $909,000 | $875,000 | $791,305 | $840,575 |
| Median Price | $855,000 | $821,000 | $725,102 | $736,925 |
