Hello everyone!
I wanted to give an update on the market and have provided some detailed info below. Naturally, I've been having a lot of conversations about the market the last few months, and gratefully, the market has been incredibly strong here on the peninsula. Homes in good condition on pretty streets have been flying off the shelves. Each year for the last few years, I wonder to myself is this the year when the market will chill out a little bit and prices flatten and remain stable. As I've shared previously, I thought that moment was in March of this year, but surprisingly, in April the market began heating up, and hasn't slowed down since. Prices are up about 8% year over year. A majority of the homes I've sold the last few months have been in multiple offers, whether representing both our buyers and sellers. Sure, I've had a few where our buyers purchased under asking, but that's more the exception than the norm, and were in cases where the home was ambitiously priced. Interest rates are still at insanely low rates: 30 year fixed for jumbo money is around 2.75%!
The above chart reflects appreciation county wide since 1991. The median home price is now over $1.7 million.
In some of the smaller towns above, sometimes the data can be skewed with a smaller sample size in just one quarter, however, it's interesting to see the distribution of pricing between towns.
The main takeaway from the above chart is that this Fall has had more sales than any of the previous few years. I think this is a reflection of two things - incredible demand, and a delayed spring market.
The market is hot!
Not surprisingly, as homes become more expensive, there's less overbidding. However, these numbers are incredible to see - some towns averaging over 100% sales to list price ratio, and others a tad under. This reflects a strong market.
This data is perhaps too granular, but I thought it was fascinating nonetheless.
Gratefully, over average days on market for all of our listings this year has been 6.2.
San Mateo has the highest population of any town on the peninsula, with about 100,000 residents, so not a surprise that it also had the most sales. In contrast, Burlingame has about a third of the residents, at 30,000, and proportionally less sales as well.
Not surprisingly, San Mateo County is the most expensive county in the Bay Area, and among the most expensive areas in the country.
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