Hillsborough Real Estate Update November 2011 - Modest Sales

As a relatively small market (100-150 sales per year), trends are relatively stable month-to-month in Hillsborough. The November 2011 data suggests a continuation of the seller's market that we have seen recently in Hillsborough. Sales remain steady, though are now at a more normal pace than the high summer activity.

There were six sales in November. Sales have declined each of the past six months, though this is more of an indication of the change in seasons (there are more sales in summer/early fall than late fall/winter) than a change in the market. Through the first eleven months of the year, there have been 132 homes sold. That is up 16% from the same period last year, and 52% from the same period in 2009. 2011 will likely end with more sales in any year since 2005.

While sales are up for the year, there have been fewer homes coming onto the market. Year-to-date, new listings are down 14%. With sales up and listing down, inventory has fallen sharply. At the end of November, there were 50 homes for sale in Hillsborough, compared to last year at this time when there were 71 homes for sale. For the year, there has been an average of just under 60 homes on the market, about twenty fewer than last year. Twenty fewer homes for sale mean that each seller has less competition and each buyer has less choice.

Recent closed sales prices in Hillsborough show why it's important to do a deeper analysis than just looking at changes in median or average selling prices. Through the first eleven months of 2011, median sales values are down 9%, while average selling values are down 4%. Looking at the chart below, which shows rolling 12 month median and average selling values, prices appear to be down about $200,000 from the end of 2010. While the data is correct, it is misleading because there has been a shift in the type of home sold in 2011 as compared to 2010. The average size of a home sold in 2011 has been 3,800 square feet, as compared to nearly 4,100 square feet in 2010. With the average price per square feet at about $700, that difference of 300 square feet equals approximately $210,000, which is equal to the entire change in average/median prices. In fact, once we control for the change in the size of homes being sold and look at just price per square foot, selling values appear to be increasing.

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

By The Numbers - Hillsborough Real Estate for November 2011