San Mateo Real Estate Market Update August 2011 - Sales Pick Up

Raziel Ungar

September 13th, 2011 - 2 min read
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Through the first eight months of the year, there have been 395 sales in San Mateo, up only slightly from 392 sales in the same period last year. Most of the areas of San Mateo County that we track have shown at least a 10% increase in sales in 2011. Last month, we thought the area might just be experiencing a different sales pattern rather than a different trend.  Sure enough, in August, 67 homes closed escrow in San Mateo, the highest monthly sales total since 2006. A look at the level of recently closed offers suggests that September will probably see big sales numbers as well. Stay tuned.

Even with just a modest uptick in sales for the entire year, inventory has fallen sharply, as there have been fewer new listings to replenish the market. Listings are down 4% compared to 2010. A common measure of supply is the average days on market, which measures for how many days the average home that sold was listed. It was at only 1.8 months in August, which was the lowest since December 2006. Last year at this time, supply was averaging over 3 months.

Price levels appear steady, though the data may be showing some softening that we have not seen in other Peninsula markets, like Burlingame or San Carlos. The price per square foot has averaged $470 in the first eight months of 2011, as compared to just over $500 in the same period in 2010. A decline of 7% may seem like a lot, but could be evidence of lower quality homes in less desirable parts of San Mateo being sold, rather than actual declines in selling values.

A counterpoint to the notion of softening is that we do not see evidence of sellers dropping prices on a widespread basis. The sale price divided by list price has averaged 99% in 2011, meaning that homes sold for about 99% of their asking price. This is both a strong number and on par for the normal rate in San Mateo for the past few years.

As San Mateo has multiple micro-markets, with price levels ranging from $450,000 to over $2 million in the San Mateo Park and Baywood areas, stay tuned for our neighborhood specific market updates which we will feature on a monthly rotating basis.

By The Numbers - San Mateo August 2011

Current Month YTD Total or Average
August 2010 August 2011 Jan - Aug 2010 Jan - Aug 2011
Sales 63 67 392 395
Days on Market 49 41 39 47
Months of Supply 3.1 1.8 3.5 3.1
Average Price $823,000 $773,000 $877,069 $824,061
Median Price $720,000 $765,000 $761,148 $746,033

 

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 HillsBurlingame VillageEaston AdditionMills Estates, Ray ParkTerrace)

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