Bidding Wars in Hillsdale
Many listings in the Hillsdale real estate market are seeing multiple offers above the asking price. In 2013, the average home in Hillsdale has sold for 9% above the final asking price, meaning that the ratio of the sales price to list price was 109%. In 'normal' markets, that ratio is typically at or slightly below 100%. Clearly, we are in the midst of a seller's market. Unless a seller has priced well ahead of the current price levels or there is something notably undesirable about a listing, a buyer should expect to face competition from multiple strong offers.
Due to the limited number of sales in a relatively small area like Hillsdale, prices will jump around a lot just based on what property happened to be listed rather than underlying price changes. If a few 2,000+ square foot remodeled homes are sold, it will appear prices are rising. If that is followed by some original 1,100 square foot two bedroom homes in need of upgrades it will then appear that prices are falling. Combining the raw data with the market knowledge of what is going on in the greater San Mateo real estate market, it appears prices have increased somewhere in the range of 10% to 15% in the past year in Hillsdale. Some of the most desirable listings may have seen price increases closer to 20%, and many of these are in the most desirable pocket, called "The Lanes", which has several streets that are cul-de-sac blocks, like Arbor, Briar, and Alder, that all back up to spacious and green parks.
The Hillsdale neighborhood typically averages one to two sales per month and 2013 has been no different. Through the first five months of 2013, there have been eight homes sold. In the past 18 months nearly every home that has been listed in Hillsdale has sold. Inventory remains extremely low. At the end of May 2013, there was only a single unsold home. Over the past year, inventory has never exceeded more than a handful of homes.
Most homes that sell were on the market for less than two weeks. (The average days on market is closer to four weeks due to an outlier that stayed on the market for well over two months). Buyers need to plan well and act decisively. Checking the internet every week and going to open houses on the weekend means that buyers will find themselves having to make quick decisions and missing out on many listings. Especially in this type of market it can be helpful to work with a Realtor who is aware of the new listings, giving a buyer more time to construct a strong offer.
By The Numbers - Hillsdale Real Estate for 2013
|Current Month||YTD Total or Average|
|May 2012||May 2013||Jan - May 2012||Jan - May 2013|
|Days on Market||20||11||26||27|
|Months of Supply||0.5||1.0||0.5||0.6|
|Avg $ per Sq Ft||$582||$546||$544||$564|
Thinking of buying or selling a home in Hillsdale?
If you're interested in learning more about the Hillsdale real estate market, considering selling your home in Hillsdale, or thinking about moving to Hillsdale, please drop me a line and I'd love to connect with you.