August 2020 Monthly Market Update
September 12, 2020
From all my conversations with clients, family and friends, everyone wants to know about how the housing market is holding up during these crazy times. Covid-19 may have had an impact on how we do business, but I am happy to report that in August, the market really held up well! Let’s dig in.
In San Mateo County, for single family homes, the number of new listings was up 8% in August. That’s 44 more homes. The number of sales was down 56 homes, a 12.5% drop in number of sales since July. But that is still more than sold in June. 395 homes sold in the county, and that is still a good number.
With Condos and townhomes the changes are even smaller. New listings are down 7% and Sales are down 2.5%, with is just 3 fewer listings. Compared to July it is not much, but compared to June we had 42% more sales! Condos are moving! I just sold a townhome in a week.
When you look at Active homes and pending homes you see that the number is somewhat higher. Pending units are in contract, but have not yet closed. You will probably see them as closed sales next month. Active condos were just slightly lower in August than July, but pending was still up. Overall, there hasn’t been much change in the inventory over the last few months.
The list price to sale price ratio is remaining remarkably stable at around 100%, meaning homes are selling for their list price. I recently sold my listing in redwood City for about 10% over the asking price, and a Foster City townhome for 6% over list price, but I cannot give you any specifics till they close escrow next month. I love when I can get more for my sellers than they were hoping! I also got a buyer into contract for $25K under list price. I always tell my buyers that we will get the right home for the right price. On average, in the county, homes are selling at list price, but on a case by case basis, some agents are able to negotiate more or less.
The median and average prices edged up August. The average single family home sold 6% higher, and the median was up about the same. The August median was 1,800,000, which means as many homes sold above that price as below. It is interesting to note that condos and townhomes split on average and medians. The median went down a little more than 2%, while the average went up about 3%. In the grand scheme of things, these numbers are not very large. We are seeing relative stability with a slightly upward trend. Buyers are overbidding when they really want a home, but they aren’t being compelled to write insane offers due to excessive competition and low inventory. Sometimes they write under the asking price, especially if a home does not sell quickly. Sellers are getting really great prices for their homes if they price them right. There is somewhat of a balance, at the moment.
When you compare each city with where we were last year, August 2020 mostly did better than August of 2019. Most communities saw a rise in value from 1-30%. The cities with overall declines had rather few sales, so it isn’t a very powerful indication of their market. Each month, as you’ve been hearing me, the numbers are basically trending upwards.
People move about every 10 years. If you think buying or selling might be in your future, please let me help you. You know I always get my sellers the highest possible price, and I always make sure buyers get the right home for the right price. I would love to help you, and your friends and family. Make sure they know about me, and let me know about them.
Take care everybody. As always stay safe and healthy.Tags: august, bay area, covid-19, Market Update, silicon valley
Categorized in: Market Conditions
This post was written by Rumana Jabeen