Distressed Properties Have Little Impact on Overall San Mateo County Housing Market
With all the media reports of soaring unemployment, record defaults and the spiking California foreclosure rate, you would think the residential real estate market in San Mateo County is plummeting. Well, we see a market that’s clearly not acting like it’s in free fall at all. Let take a more critical look.
San Mateo County Real Estate is Not Like the Rest of California
Many California housing markets are strongly influenced by distressed homes. Distressed meaning pre-foreclosures (short sales) and bank owned homes (REOs or Real Estate Owned by the Bank). Not distressed as in the angry, vindictive San Mateo County home owner losing his or her home in foreclosure that trashes and mutilates the property on the way out the door. Here in San Mateo County we are having an entirely different experience than most of the rest of California.
How Many Distressed Properties are on the San Mateo County Real Estate Market Today?
Distressed properties in San Mateo County comprise only 250 (16.94%) of the 1,476 single family homes and condominiums currently on the market. By any measure, this is an insignificant portion of the overall San Mateo County home resale market, and is primarily comprised of lower end properties in need of rehabilitation.
What Have We Seen in the Last 3 Months?
Number of Properties Listed in San Mateo County
| # Homes Listed | # Short Sales Listed | # Bank Owned Listed | |
|---|---|---|---|
| Single Family Homes | 1727 | 523 | 167 |
| Condos | 472 | 82 | 51 |
Number of Properties Sold in San Mateo County
| # Homes Sold | # Short Sales Sold | # Bank Owned Sold | |
|---|---|---|---|
| Single Family Homes | 1196 | 155 | 174 |
| Condos | 353 | 50 | 65 |
Buy Low, Rehab and Rent is Now a Viable Strategy in San Mateo County – Why?
Only about 1/3 of the short sale listings placed on the MLS actually close escrow. The San Mateo short sales that don’t sell – about 2/3 – are usually foreclosed upon and end up being re-listed on the MLS as a bank owned property. The numbers show that REO’s are selling in greater numbers than they are listed. Demand is out-stripping the supply which tells me the prices of single family homes and condominiums will increase – particularly among the most affordable segment of the market. However, a critical look at the location and make up of these properties show they are concentrated in the least costly neighborhoods and in poor condition. That’s why investor demand is so high – buy low, rehab and rent is now a viable strategy in San Mateo County.
Bank Owned Homes are Most Aggressively Sought Segment of the San Mateo Real Estate Market
As anyone who has tried to buy a San Mateo County bank owned home recently can attest, they are the most aggressively sought-after segment of the market. Especially those homes and condominiums priced under $600,000. It has become the norm, rather than the exception, to see new San Mateo County bank owned homes attract multiple offers within days of coming on the market.
2009 is the Time to Invest in or Buy San Mateo County Real Estate
If you are looking for a home to live in, or an investor seeking cash flow and appreciation potential, this current market in San Mateo County is the best buying opportunity I have seen in 31 years in the business. Comparing median income versus median home values, we see homes more affordable than at any time since the early 1980’s.
Buying Bank Owned Homes Not So Straight Forward – Key: Educate Yourself First
Distressed properties are unconventional transactions with unusual rules and procedures. You can reduce much of the frustration and avoid so many problems by doing your homework. We share our passion for education by presenting a series of San Mateo County Home Buyer Education programs that are designed to inform and educate home buyers – and investors – about the things they really need to know about buying foreclosures, short sales, bank owned homes and condominiums. Check our San Mateo Real Estate class schedule for upcoming programs.
Next Webinar: Trustee Sales – The Most Dangerous and Potentially the Most Profitable Way to Buy San Mateo Real Estate
Our next webinar to educate home buyers and investors about buying Trustee Sales (sometimes known as sheriff’s sales or buying on the courthouse steps) will be held on Tuesday November 17th at 6pm.
Sign up using the “Sign Up” button below.
Search San Mateo County Bank Owned Homes
Click on the map below to search Bank Owned Homes in San Mateo County.
Enjoyed this Post? Why Not Subscribe?
If you have enjoyed LivingWellinSanMateo – san mateo county real estate, please subscribe to our RSS feed.
Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
