November 2008 San Mateo County MarketWATCH – Single Family Homes

By Raymond Stoklosa · December 17th, 2008

November 2008 San Mateo Real Estate Price Report While the effects of both the sub prime crisis and the Wall Street meltdown are being felt, San Mateo County continues to be the one bright spot in the housing market both nationally and, in particular, in California and the Bay Area.

A key indicator of strength lies in the supply of inventory for San Mateo County single family homes which hovers at about 3.5 months supply of unsold inventory. This is down by about half of the recent high in August, 2007, of 6.62 months worth of unsold homes.

We continue to characterize the San Mateo County housing market as a buyers’ market due to the relatively large supply of homes coupled with seasonal normal to weak demand, in addition to the lack of consumer confidence that has rolled over the area. Yet, San Mateo County had 460 newly initiated home sales (pending sales) in November 2008 versus 284 in 2007.

The gap between list price and actual selling price is widening as homes sellers on average received 93.66% of their asking price at the time of sale. It’s important to note that this figure calculates on the basis of asking price at the time of sale and does take into account the original asking price.

The average price of a San Mateo County single family home is now down to $859,675 from its high in July 2007 of $1,332,839. This figure is actually more of a consequence of what specific homes are sold rather than a reflection of the value of any particular home. Not reflected in the data is the fact that we are still seeing multiple offers and over bids on the most desirable and well priced homes. These buyers are typically making a long term commitment and are less concerned about short term fluctuations in the San Mateo County housing market.

But, make no mistake about these people. Today’s San Mateo County buyer is more savvy and plugged in to market conditions. This is clearly a price sensitive, value-conscientious San Mateo County housing market. Home buyers are cautious and discriminating. Serious, motivated San Mateo County home buyers recognize their bargaining power and are looking at every home on the market that matches their criteria, expecting to get the most bang for the buck.

To download a copy of our current MarketWATCH report, please visit SanMateoHomesInfo.com and click on the MarketWATCH tab.

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