Hottest Submarket in Burlingame?
Lyon Hoag may be the 'hottest' submarket in Burlingame. Prices are rising, buyers are bidding above asking prices, sales activity is buoyant and inventory is very low.
Year-to-date, average and median selling values are above $1 million, versus around $900,000 in 2011. The average price per square foot has averaged $609 in 2012. That is an increase of 15% over 2011!
Prices are rising in most areas of Burlingame (and the Peninsula), due to strong buyer demand. This especially appears to be the case in Lyon Hoag. Many new listings are being sold in less than two weeks with multiple offers, culminating in bids that are 5% to 10% above asking prices. The average home sold in Lyon Hoag in 2012 has gone for 7% above asking price. A handful of homes have even gone for 15% to 25% above the list price.
Why the price increases? Even with the recent run-up, Lyon Hoag is still a 'value' neighborhood in Burlingame. Buyers get more bang for their buck than in many other Burlingame submarkets, though the gap has narrowed considerably in 2012. For people looking to move to Burlingame and get their children into the Burlingame school system, Lyon Hoag represents one of the more affordable ways to make that happen. Given the recent strong job growth in some higher paid sectors like the tech industry, there are more people out there able to afford Burlingame prices. But with a fixed supply of homes (not much new construction in Burlingame or nearby areas), buyers are forced to compete, or look elsewhere.
Sales activity, which picked up in 2011, has continued to be very strong in 2012. Through the first ten months of 2012, there have been 29 homes sold. 29 homes sold in all of 2011. In 2008, 2009 and 2010, no more than 13 homes sold in any one year.
Although there has been an increase in new listings, it has not kept pace with the number of sales. The result is a decline in inventory. At the end of October 2012, there was only one unsold home on the market in Lyon Hoag. Inventory has been around 2 to 3 homes most months. Prospective buyers have very few options from which to choose.
By The Numbers - Lyon Hoag Real Estate for October 2012
|Current Month||YTD Total or Average|
|October 2011||October 2012||Jan - Oct 2011||Jan - Oct 2012|
|Days on Market||26||148||25||43|
Thinking of buying or selling a home in Lyon Hoag?
If you're interested in learning more about the Lyon Hoag real estate market, considering selling your home in Lyon Hoag, or thinking about moving to Lyon Hoag, please drop me a line and I'd love to connect with you.