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Hillsborough Real Estate - January 2013

February 19th, 2013

Prices Edging Upwards

While not experiencing the same bidding wars as neighboring Burlingame and San Mateo, and nearby San Carlos, the data shows prices are rising in Hillsborough. In 2012, the average price, median price and average price per square foot were all at the highest annual value since 2008.

The average price per square foot in Hillsborough in 2012 was $715, up from $701 in 2011, and a low of $678 in 2010. The average price per square foot reached a peak of just under $800 in the 2006 to 2008 timeframe. In the last four months including January 2013, the average price per square foot has been $739. It just so happens that $739 is approximately halfway between the lowest year, 2010, and the highest year, 2007. This is a sign that prices have recovered about half of the losses seen in the downturn, and are 5-10% below the peak values. Hillsborough was one of the least impacted markets during the real estate downturn in terms of price declines. Prices fell by approximately 15% in the area, as compared to declines of 30% or more in many other areas of California and the nation. Likely owing to the sophistication of buyers and real estate agents in Hillsborough, the city avoided some of the excess optimism of the boom years and the irrational pessimism of the past few years.

Most Sales in Seven Years

There were 145 homes sold in Hillsborough in 2012, the most since 152 homes were sold in 2005. After a slow start, sales activity really picked up in the middle and second half of the year. After reaching a low of 94 sales in 2008, the number of transactions has increased each year. In January 2013, there were six homes sold. There are typically very few sales in the winter months.

Unlike some areas of San Mateo County, where inventory levels are at historically low levels, the Hillsborough real estate market has closer to an average level of listings. At the end of January 2013, there were 42 homes on the market in Hillsborough, only two fewer than January 2012. In comparison, Burlingame had 14 homes left on the market at the end of January 2013, less than half the number in January 2012. Because there is more inventory, buyers are less likely to get in a bidding war in Hillsborough than neighboring real estate markets.

By The Numbers - Hillsborough Real Estate for 2012 and January 2013

  Current Month YTD Total or Average
  January 2012 January 2013 Jan - Dec 2011 Jan - Dec 2012
Sales 3 6 137 145
Days on Market 86 51 62 62
Months of Supply 14.7 7.0 5.0 4.6
Average Price $3,070,000 $2,070,000 $2,635,533 $2,865,483
Median Price $3,080,000 $2,200,000 $2,344,971 $2,766,048
Avg $ per Sq Ft $621 $752 $701 $715
 

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.