October MarketWATCH Report

By Raymond Stoklosa · November 10th, 2008

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

San Mateo County is showing some positive signs this month. Year-over-year comparisons show that both the number of newly initiated home sales and number of homes closed continue to improve, 523 vs. 298 and 347 vs. 275, respectively. These statistics indicate that despite the credit-crunch, the market is still moving in San Mateo County.

On the down side, the average price dropped to $859,675 reflecting the powerful effect foreclosures, short sales, and distressed homes are having on the market. When you dive into the numbers, however, it becomes clear that the average is more a function of the sheer volume of lower value properties on the market, than an overall decrease in home values across the country. It is those lowest priced homes that pressed down the mathematical average selling price.

Overall inventory is declining, and that good news. At the current rate of sales, we have about 3.5 months of inventory, as compared to almost 6 months supply a year ago.

That said, buyers who are looking to get a great deal before 2008 closes, should begin there search immediately. With the market improving, buyers are seeing less of an advantage and there continue to be reports of multiple offers in upscale neighborhoods when homes are in superior condition and located on attractive streets with well-performing schools. Now is the time if you are looking to buy.

If possible, sellers should hold off on selling their properties. The number of low value transactions occurring are distorting the value pyramid of single family homes and creating the illusion that each and every home is a candidate for liquidation, making it a tough market for well-located, superior homes. If you find yourself with a compelling reason to sell, however, make sure to price competitively and avoid letting your home linger on the market. And, as always, make sure you are dealing with a Realtor who is an expert at navigating the down-market.

Thank you for reading our report. Should you be interested in more information, please don’t hesitate to contact us. – from October MarketWATCH Report

Want to read the full report? Visit SanMateoHomesInfo.com and click on the MarketWATCH to download a free copy of MarketWATCH.

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