Hillsborough Real Estate - June 2012
Market More Nuanced Than Neighboring AreasIn many of the cities neighboring Hillsborough, it is a clear seller's market. Sales are up, listings are down, and strong buyer demand is pushing selling prices above asking prices.
The Hillsborough real estate market has been a little more even-keeled in 2012. It is difficult to pinpoint 'normal', but at least relative to what we are seeing nearby, there seems to be a better equilibrium between buyers and sellers. For buyers that are finding themselves outbid on higher end properties in the nicest areas of Burlingame or San Mateo, it might be worthwhile to check out the Hillsborough market.
In Hillsborough, there have been 14 fewer home sales in the first half of 2012 than the first half of 2011 (from 78 sales down to 64 sales). At the same time, inventory levels are near the average we have seen over the past five years. There were 65 unsold homes on the market at the end of June 2012, the same as June 2011. Some nearby areas like Burlingame, San Carlos and San Mateo have inventory levels that are 20%, 50% or even 70% below the recent five year average.
However, make no mistake, market conditions for sellers in Hillsborough are much better than 2009 or 2010. It is just that we have not seen the dial turn even more in their favor in 2012 versus 2011.
Prices Appear SteadyOn a 12 month moving average basis, median and average selling values have not shown any sustained change over the past year. An average home in Hillsborough will still set you back about $2.5 million for about 4,000 square feet (along with the excellent schools, large lots and safe surroundings).
A big driver of the total cost of a home in Hillsborough is the large size of homes in the city. The average price per square foot is about $680, approximately 10 percent higher than in neighboring Burlingame. However, because the average home sold in Hillsborough is 4,000 square feet, versus just under 2,000 square feet in Burlingame, the difference in average selling values is more than 100 percent.
One sign pointing towards firmer selling values is that the average sales price to list price ratio in the first six months of 2012 is at the highest level since 2007. Interestingly, the ratio is typically below 100% in Hillsborough (even in the boom years of 2004 and 2005 when prices were rising sharply). This suggests that even in a normal market in Hillsborough, sellers accept offers below their asking price. In 2012, the ratio has been 96.7%, and it was as low as 94.5% in 2009. In 2005 it was 98.9%. Even small changes in the ratio can point to noticeable swings in market sentiment.
Also, the city should benefit from low inventory and strong buyer demand that we see in nearby cities. There is no reason that a buyer unable to find an acceptable listing in the Burlingame Hills for example would not look southward.
By The Numbers - Hillsborough Real Estate for 2012
|Current Month||YTD Total or Average|
|June 2011||June 2012||Jan - Jun 2011||Jan - Jun 2012|
|Days on Market||59||44||63||58|
|Months of Supply||3.6||4.6||4.6||5.2|
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.