Not as Strong of a Seller's Market as Nearby Areas
In many of the neighboring cities of Hillsborough, 2012 has seen sharply higher sales activity at the same time as much lower inventory levels, leading to a strong seller's market. The Hillsborough real estate market has been a little different. There have been ten fewer home sales in the first months of 2012 than the first five months of 2011 (from 60 sales down to 50 sales). At the same time, inventory levels are near the average we have seen over the past five years. There were 61 unsold homes on the market at the end of May 2012. Some nearby areas like Burlingame, San Carlos and San Mateo have inventory levels that are 20%, 50% or even 70% below the recent five year average.However, make no mistake, market conditions for sellers in Hillsborough are much better than 2009 or 2010. It is just that we have not seen the dial turn even more in their favor in 2012 versus 2011.
Prices Appear Steady
On a 12 month moving average basis, median and average selling values have not shown any sustained change over the past year. An average home in Hillsborough will still set you back about $2.5 million for about 4,000 square feet (along with the excellent schools, large lots and safe surroundings).A big driver of the total cost of a home in Hillsborough is the large size of homes in the city. The average price per square foot is about $680, approximately 10 percent higher than in neighboring Burlingame. However, because the average home sold in Hillsborough is 4,000 square feet, versus just under 2,000 square feet in Burlingame, the difference in average selling values is more than 100 percent.
One sign pointing towards firmer selling values is that the average sales price to list price ratio in the first five months of 2012 is at the highest level since 2007. Interestingly, the ratio is typically below 100% in Hillsborough (even in the boom years of 2004 and 2005 when prices were rising sharply). This suggests that even in a normal market in Hillsborough, sellers accept offers below their asking price. In 2012, the ratio has been 96.7%, and it was as low as 94.5% in 2009. In 2005 it was 98.9%. Even small changes in the ratio can point to noticeable swings in market sentiment.
By The Numbers - Hillsborough Real Estate for 2012
| Current Month | YTD Total or Average | |||
| May 2011 | May 2012 | Jan - May 2011 | Jan - May 2012 | |
| Sales | 20 | 15 | 60 | 50 |
| Days on Market | 59 | 51 | 64 | 62 |
| Months of Supply | 3.2 | 4.1 | 4.9 | 5.3 |
| Average Price | $2,451,000 | $2,360,000 | $2,581,033 | $2,667,060 |
| Median Price | $2,100,000 | $2,175,000 | $2,195,067 | $2,485,340 |
Thinking of buying or selling a home in Hillsborough?
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.
