Hillsborough Market Update August 2011 – Market Takes a Breather
After a strong stretch in May, June and July in Hillsborough the market took a breather last month. There were eight sales in August, which is a more typical total for a winter month, than at the end of the summer selling season. Even with a slow August, there have been 103 sales through the first eight months of the year. That is up 13% from the same period last year, and nearly double from the same point in 2009.
Sales were likely limited by the lack of new inventory on the market. There were only 10 new listings in August, compared to an average of 23 new listings per month in the first seven months of the year. Year-to-date there has been 16% fewer homes listed in 2011 than at the same point in 2010. With fewer homes listing and more sales, inventory has declined. Active inventory at the end of August 2011 was 58 homes, while at the end of August 2010 it was 88 homes. Thirty fewer homes for sale mean that each seller has less competition.
Even though the number of Hillsborough home sales has increased, it is challenging to infer a price trend because the overall market is so small. 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 median price in August 2011 was $2.8 million, compared to $2.1 million in July 2011. When we average things out over a longer time, we can tell prices are holding steady. The price per square foot has averaged about $700 in 2011, which is a little above 2010, but well 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 just over 95% in 2011, meaning that homes sold for about 95% 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 August 2011
|Current Month||YTD Total or Average|
|August 2010||August 2011||Jan - Aug 2010||Jan - Aug 2011|
|Days on Market||68||70||65||61|
|Months of Supply||4.6||7.3||6.8||4.6|
See below for all of the latest real estate market updates for August 2011:
San Mateo County (July 2011) Burlingame Hillsborough San Mateo San Carlos Burlingame neighborhoods (Burlingame Grove, Burlingame Hills, Burlingame Village, Easton Addition, Mills Estates, Ray Park, Terrace)