Hillsborough Prices Continue to Rise
Similar to other areas of the Peninsula, home prices are rising in the Hillsborough real estate market. Although Hillsborough took a little longer to see price appreciation, the area is making up for lost time, so to speak. The average price per square foot in the past three months has averaged $815, exactly $100 higher than the $715 average price per square foot in 2012. The 12 month moving average price per square foot is up nearly 9% year over year with most of the gains in the past few months.
The Hillsborough area does not typically see as many homes selling above asking prices than neighboring Burlingame. Even during the height of the previous real estate boom in the middle of the last decade, the ratio of sales prices to list prices never was above 100% for an extended time. In nearby areas, the ratio regularly exceeded 105% as buyers bid up properties. In the current market upswing, we are seeing that same 'frenzy' in other markets as buyers bid 5%, 10% or more above asking prices. In Hillsborough, the numbers do not look as impressive at face value, but given the difference in the market types, we are starting to see the same story of buyers competing for the same properties. The average sold home in April 2013 went for exactly the final list price, a ratio of 100%. For the year, the ratio is averaging 98.4%. If this holds it would be the highest since it was 98.9% in 2005!
Healthy Sales Activity Healthy to Start Year
For the seventh straight month, home sales were higher than the same month from a year ago. Through the first four months of 2013, there have been 43 homes sold, up from 34 transactions in the first four months of 2012. If the rest of 2013 can match the final eight months of 2012, this would be the most sales in a year in Hillsborough since 2004.
While many areas of San Mateo County may see a dip in sales due to historically low inventory levels, the Hillsborough real estate market has closer to an average level of listings. At the end of April 2013, there were 58 homes on the market in Hillsborough, the same as in April 2012. In comparison, Burlingame had 20 homes left on the market at the end of April 2013, less than half as many as in April 2012.
Because there is more inventory, buyers in Hillsborough may have the opportunity to bid more cautiously, especially if there is more than one property on the market that matches their needs. However, with prices rising and a strong local economy, buyers will still need to make a competitive offer. Well priced homes that appeal to a broad set of buyers have a strong likelihood of selling at or above the asking price.
By The Numbers - Hillsborough Real Estate for 2013
|Current Month||YTD Total or Average|
|April 2012||April 2013||Jan - Apr 2012||Jan - Apr 2013|
|Days on Market||52||60||69||53|
|Months of Supply||6.1||4.8||4.1||3.6|
|Avg $ per Sq Ft||$710||$835||$672||$799|
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.