Strong Activity in July
July was a big month in Hillsborough, with 22 homes selling, only the third month with at least 20 sales in the past eight years. Through the first seven months of 2012 there have been 86 homes sold in Hillsborough, down from 95 homes sold in the same period in 2011. After a slow start to the year, this could be a turning point in the Hillsborough real estate market, though we will have to wait and see for a few months to get a better understanding. Relative to nearby Peninsula cities, like Burlingame and San Mateo, which are clear seller's markets, the Hillsborough real estate market has been a better equilibrium between buyers and sellers this year.
There were 62 unsold homes on the market at the end of June 2012, about the same as June 2011. 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.
When there is a spike in sales, it can be a sign that sellers are dropping prices. This does not appear to be the case in Hillsborough. The average sales price to list price ratio in July 2012 was 99.4%. A ratio over 100% suggests that buyers are bidding above asking pries, while a ratio under 100% suggests that sellers are having to drop prices to entice buyers. The 'normal' ratio varies by market. 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 97.4%, and it was as low as 94.5% in 2009. In 2005 it was 98.9%. While one month does not make a trend, we find it a positive sign for sellers that in a month with a record level of sales, the price to list ratio was on par with the boom years of 2004/2005.
Average and median selling values have been flat for the past 12 months around $2.6 million. The average price per square foot has been just under $700 on a 12 month moving average basis. In the last four months, the average price per square foot has been above $700. This might be a sign of price appreciation, but it is still too early to tell.
By The Numbers - Hillsborough Real Estate for 2012
|Current Month||YTD Total or Average|
|July 2011||July 2012||Jan - Jul 2011||Jan - Jul 2012|
|Days on Market||51||51||61||56|
|Months of Supply||3.8||2.8||4.4||4.6|
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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.