Burlingables Real Estate - October 2012

Homes Selling Quickly

Homes are not remaining on the market for long in the Burlingables neighborhood of Burlingame. The average home sold in 2012 has done so in less than 10 days, often after a bidding war! Prospective buyers need to constantly stay on top of the market or risk missing out on most new listings. Periodically checking the market every week or so in Burlingables will likely lead to a frustration as a buyer will see mostly pending listings, not for-sale homes. In markets like this, it can be helpful to work with a Realtor, who is monitoring all of the new listings.

Homes are selling so quickly because of strong buyer demand and a lack of inventory. Buyer demand is being generated from a healthy local economy, low interest rates and shift in the marketplace that the 2008-2010 real estate downturn is behind us. On the supply side, new listings are way down this year. Only 15 homes have been listed and virtually all have sold, with a handful pulled off the market as sellers reconsidered their plans. Inventory has been low all year long in the Burlingables real estate market. At the end of every month in 2012, there has been either 1 or 0 unsold homes remaining. In 2011, inventory peaked at seven unsold homes.

With so few homes from which to choose, buyers have had to compete against each other. The result is that sellers are often receiving well above their asking price. The average sales price to list price ratio has been 109% in 2012, meaning that the average home has sold for 9% above its list price. That is an extra $100,000+ on the average homes in Burlingables, great news for sellers and homeowners. However, buyers should not blindly bid above list prices. Sellers have seen past comps from earlier in the year and are adjusting their asking price accordingly.

Prices have definitely risen over the past 18-24 months. The chart below shows various measures of home prices in Burlingables, with a 12 month moving average to smooth out some of the month-to-month variation. Even with the smoothing, the data can jump around a bit, owing to how few sales there are in the area. The average price per square foot has been just above $700 in 2012, and the 12 month moving average is nearing $700. The last time prices were at this level was in early 2008. Recent price increases have erased a large portion of the downturn in homes prices seen over the past five years.

By The Numbers - Burlingables Real Estate for October 2012