September MarketWATCH Report

By Raymond Stoklosa · October 10th, 2008

On behalf of The RayChel Realty Group, I am pleased to present the September 2008 edition of our MarketWATCH Report, a guide to San Mateo County real estate prices published on a monthly basis.

With the financial markets in a state of panic, it is difficult to find positive stories on the state of our economy. Luckily for San Mateo County home buyers and sellers, however, the September data shows some promise.

After the unprecedented highs we have seen in years past, followed by a, although comparatively small, San Mateo County real estate market crash, it appears now that a positive trend is developing as the number of pending sales grows.

September 2008 saw 308 more single family homes placed under contract as compared to 2007. This is the seventh consecutive 2008 month that the number of pending sales exceeded the same month in 2007. And for the third month in a row, we have actual 2008 closed sales exceeding the 2007 levels. These statistics means that buyers are seeing more favorable buying opportunities and are taking advantage.

Looking ahead, there is only about 3.4 month’s supply of homes, at the current sales rate in San Mateo County, down from 6.6 months supply in September 2007. That’s a 50% reduction in the “on–the–shelf” inventory from same period last year – a signal that the supply side of the equation is balancing back toward a more stable market.

However positive the statistics are, San Mateo County is not immune from the sub-prime mortgage meltdown.

If you compare the average sales price of San Mateo County homes in September 2008 to September 2007, it appears as though prices declined about 24% year to date. However, drilling down shows how the glut of sub–prime mortgage foreclosures drove down the average. Meaning that the decline is actually more reflective of the large number of relatively inexpensive distress homes sold, rather than an across the board decline in value.

San Mateo County home buyers should note that this data may foretell the approaching end of the buyer’s market. Trend lines are turning, sell through rates are improving and we are entering into the historically slowest sales period of the year – November through January. Now may be your best opportunity to capture a great deal before the market increases momentum again following the holiday season.

San Mateo County home sellers should still remain cautious. If you don’t have a compelling reason to sell your home, don’t. Wait until you have a pressing need to change your present housing situation, and preferably wait until the spring buying season. This is not a time to test the market or expect buyers to throw money at you. The market is price sensitive and buyers expect value for their investment. Lenders are cautious and appraisers are realistic so mistakes are not easily forgiven.

To download the full report, please visit our sister site, SanMateoHomesInfo.com and click on the “MarketWATCH” tab at the top of the site. Don’t hesitate to contact us with questions about San Mateo County real estate or your individual situation.

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