Better Equilibrium Between Buyers and Sellers than Other Burlingame Neighborhoods
Many Burlingame neighborhoods are experiencing clearly rising prices with homes receiving multiple offers above asking price. In short, it is a sellers market. The Burlingame Park real estate market is looking more like Hillsborough with a better balance between buyers and sellers. As we do our review of selected areas on the Peninsula, a trend seems to emerge. The areas with lower price points (which is all relative) are seeing strong buyer demand. In Burlingame, neighborhoods like Lyon Hoag and Burlingame Gardens have seen sharp price increases. Some of the higher priced areas, like Burlingame Park, or neighboring Hillsborough have seen steady buyer demand, but not the mini-boom as the lower priced submarkets.
That said, the balance between buyers and sellers is shifted more towards sellers than it has been in the past few years in Burlingame Park. There have been ten homes sold in the first seven months of 2012, the same as the first seven months of 2011. Listings are way down and the result is that inventory has completely dried up. There were no unsold listings available at the end of the month in July 2012. We haven't seen that happen since early 2008.
A lack of inventory should be a positive sign for price appreciation going forward. In some Burlingame neighborhoods, we are seeing buyers regularly bid 5% to 10% above list prices, paying $100,000 or more than a seller is asking. While there are certainly instances where that has occurred in Burlingame Park, it hasn't been pervasive. The average sales price to list price ratio is 98.9% in 2012, up slightly from 98.2% in 2011. While a ratio below 100% is indicative of sellers accepting bids below asking, it does not mean that prices are falling. The normal ratio seems to vary by area, but it is common for sellers to price above recent comps in hopes of a higher price, only to settle for something less that is still equal/greater than recent comps.
It is tough to get an accurate read of price levels in Burlingame Park. There are not a lot of sales to go by, and also, the homes that have been listed and sold in 2012 have been much smaller than normal for the area. The average home sold has been 2,200 square feet, as compared to 2,700 square feet in the same period in 2011. This makes comparisons difficult, as we would expect the average price per square foot to be higher, given that smaller homes are selling (all else equal, a smaller home will often sell for a higher price per square foot). Looking at selling values, price to list ratio, and general market environment, prices are probably firm to slightly up in the Burlingame Park market.
By The Numbers - Burlingame Park Real Estate for July 2012
|Current Month||YTD Total or Average|
|July 2011||July 2012||Jan - Jul 2011||Jan - Jul 2012|
|Days on Market||11||27||16||47|
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