San Mateo Market Update July 2011 - Different Trend Than Other Markets

In July, 51 homes closed escrow in San Mateo. Through the first seven months of the year, there have been 326 sales, down slightly from 329 sales in the same period last year, though up 19% from 2009. Most of the areas of San Mateo County that we track have shown an increase in sales in 2011, with the recent months being the strongest. Interestingly, the City of San Mateo had a modestly strong first quarter, but the May, June and July time period have been weaker, with sales down 10% from the prior year.

It might be that the sales pattern is just a little slower this year. We will continue to monitor to see if sales levels increase. One suggestive sign is that there were 79 accepted offers in July, the most in any month since 2006. Assuming a majority of the ratified contracts on those homes do close, sales will rise.

Even with lower sales, inventory has not increased, as there have been fewer new listings to replenish the market. Listings are down 6% compared to 2010. A common measure of supply is the average days on market, which measures for how many days the average home that sold was listed. It was at 2.7 months in July, and has been averaging just over 3 months for the year, about the same as last year.

Price level have remained stable.

Median prices move around a lot from month to month depending on which specific homes sold in a given month. If we look at the 2010 time period, median prices averaged around $760,000. In 2011, median prices have averaged about $745,000, a minimal decrease from the year prior, but well within normal fluctuation. The price per square foot has averaged about $485 in the past few months, down slightly from 2010, but still within the same range.

We have no evidence of sellers dropping prices on a widespread basis. The sale price divided by list price has averaged 98% in 2011, meaning that homes sold for about 98% of their asking price, a very strong number, which is the normal rate for San Mateo for the past few years. This is also particularly telling given the wide range of prices in San Mateo, which range from $450,000 to over $2 million in the San Mateo Park and Baywood areas.

As San Mateo has multiple micro-markets, stay tuned for our neighborhood specific market updates which we will feature on a monthly rotating basis.

By The Numbers - San Mateo July 2011