Imbalance Between Buyers and Sellers Grows Further
For the 14th straight month, the average ratio of selling price to list price in the San Mateo real estate market was over 100%, echoing the frenzy of the 2005/2006 timeframe. The ratio was 107.0% in March 2013, the highest since April 2005. A ratio above 100% means that the average sale is for more than the final list price (though even in this market many homes still sell for less than their asking price, as some sellers price too far ahead of the market).
While it is impressive enough that the ratio has remained above 100% for so long, it is even more meaningful that the ratio continues to rise. One can think of this ratio as a measure of acceleration. When it is above 100% in most markets it is a sign that there is positive price acceleration. When the ratio is below 100% it is a sign of price deceleration. In the San Mateo real estate market not only is acceleration positive, but the acceleration itself is increasing!
Not surprisingly, given bidding frenzies, the data shows prices are rising in the San Mateo real estate market.The 12 months moving average price per square foot, median selling value and average selling prices are all at their highest since early 2009.
Prices have increased by around 10% in the past year. In the past 12 months, the monthly average price per square foot has been above $500 for 10 months. In the prior 12 months, it was above $500 for just one month.
Sales Activity Lower in March 2013
After a strong start to the year when sales activity was the highest since 2005, there were just 43 homes sold in March 2013. This is the fewest March sales since 2009 and well below the 69 transactions in March 2009. Looking a little longer-term sales have been rising. There were 686 homes sold in 2012, up from 596 homes in 2011, and the most since 2006.
Even though there is very healthy buyer demand, the number of sales in 2013 may fall short of 2012 due to constrained levels of inventory. At the end of March 2013, there were approximately 40 unsold homes on the market in San Mateo as compared to 87 unsold homes in March 2012 and 143 unsold homes in March 2011.
Even in the best seller's market, not every listed home sells for various reasons, including sellers pulling the listing off the market. In 2012, there was 754 listings and 686 sales. This extremely high ratio of sales to listings was only possible due to level of inventory falling by 67 homes. Through the first three months of 2013 there have been 167 new listings, down 17.7% from the first three months of 2012. If that trend were to hold through all of 2013, there were would be 620 new listings. Even if every listing were to sell and the market went through all of the existing inventory, sales activity would decline in 2013 compared to 2012.
By The Numbers - San Mateo Real Estate for 2013
|Current Month||YTD Total or Average|
|March 2012||March 2013||Jan - Mar 2012||Jan - Mar 2013|
|Days on Market||41||26||48||32|
|Months of Supply||1.3||0.9||2.0||0.9|
|Avg $ per Sq Ft||$476||$588||$469||$545|
Thinking of buying or selling a home in San Mateo?
If you're interested in learning more about the San Mateo real estate market, considering selling your home in San Mateo, or thinking about moving to San Mateo, please drop me a line and I'd love to connect with you.