Burlingables Real Estate - July 2012

Very Hot Neighborhood

It is a seller's market in the Burlingables neighborhood of Burlingame. Homes are flying off the market, buyers are bidding above asking prices and prices appear to be rising.

There have been 10 homes sold in the first seven months of 2012, the same as in the first seven months of 2011. While that might not seem impressive, there have been much fewer homes listed in 2012. In fact, there have been only 11 newly listed homes this year. Almost every home listed has sold quickly. The average days on market for homes sold in 2012 is 10 days! Buyers that check the market periodically are going to miss out on virtually every listing, especially when you consider the time it takes to view a home and make an offer. Inventory has been almost non-existent, with zero homes left unsold each of the past three months.

With such limited inventory and fast sales, it should come as no surprise that sellers are often receiving well above their asking price. The average sales price to list price ratio has been 108% in 2012, meaning that the average home has sold for 8% above its list price. That is an extra $80,000-$100,000 on most homes in the area, great news for sellers and homeowners. However, buyers should not blindly bid above list prices. A recent sale was actually under list price, a signal that perhaps sellers have adjusted listings to a higher price level.

Prices do appear to be rising. The average price per square foot has been just above $700 in 2012, well above last year at $650. The average and median selling values do not show a price increase, and the average price actually shows a decrease. This is completely due to the fact that the average size home sold in 2012 has been more than 10% smaller than in 2011, a random deviation.

By The Numbers - Burlingables Real Estate for July 2012