Hillsborough Real Estate Market Update September 2011 – Positive Year Continues

As a relatively small market (100-150 sales per year), the trends do not often change month-to-month in Hillsborough. The September 2011 data suggests a continuation of the broad trend, which is a shift towards more of a seller's market. Sales are up, while listings and inventory is down.

There were nine sales in September. Through the first nine months of the year, there have been 118 homes sold. That is up 18% from the same period last year, and a staggering 82% climb from the same period in 2009.

Even though sales have risen, they may have been inhibited from a further increase by the lack of inventory on the market. At the end of September, there were 57 homes for sale in Hillsborough. Last year at this time, there were 91 homes. More than thirty fewer homes for sale mean that each seller has less competition and each buyer has less choice. The homes that are on the market are selling faster than they did in the year prior. The average home that has sold in 2011 did so in 58 days, down from 69 days in 2010.

It is challenging to infer a price trend in Hillsborough because the overall market is so small and the wide range of types and values for homes. Price levels jump around a lot depending on which specific homes sold, particularly because Hillsborough price points range from $1.5 million to well over $10m. For example, the lowest monthly median price in 2011 was $1.95 million and the highest was $2.95 million. When we average things out over a longer time, it appears that prices are holding steady. The price per square foot has averaged about $705 in 2011, which is a little above 2010, but within normal fluctuation.

As the market continues to be strong, sellers are not seeing the need to dramatically reduce prices to entice buyers because of the demand, though there are continued targeted price drops. The sale price divided by list price has averaged nearly 96% in 2011, meaning that homes sold for about 96% of their asking price. The “normal” rate varies by area. In Hillsborough, it has been averaging just below 95% for the past few years.

By The Numbers - Hillsborough September 2011

See below for all of our the latest real estate market updates for September 2011:

San Mateo County Belmont Burlingame and neighborhoods (Burlingame Grove, Burlingame Hills, Burlingame Village, Easton Addition, Mills Estates, Ray Park, Terrace) Foster City Hillsborough and neighborhoods (Upper Hillsborough, Tobin Clark Estate, Lower Hillsborough) Redwood City Redwood Shores San Carlos San Mateo