Market Update – April 2017
April 21, 2017
Peninsula Real Estate Market Update – April 2017
Looking at San Mateo County’s March sales data, we continue to see strong buyer demand driving median sales prices up, and reluctant sellers keeping inventory exceptionally low. The strong sellers market conditions persist.
The San Francisco – Silicon Valley economy remains very robust, but more mixed, as evidenced by a cooling in the commercial real estate leasing market, where rents dipped in 2016. Also, in the tech sector, industry job reductions increased by 21% in 2016. Tech is driving the real estate market on the Peninsula, so that’s the bell-weather industry to watch.
On the following charts we see that the San Mateo single family home market median sales price rose to $1,350,000 up a strong 12.5% year-on-year. The number of sales rose 9.6% and the number of new listings was up sharply, more than making up for a very low number of new listings in February. New listings in the first quarter of 2017 are slightly ahead of 2016 by 1.9%. Nevertheless, the strong buying has eaten further away at inventory, which has dropped to just 1.2 months of supply.
Buyers remain aggressive on their offer prices, with single family home median sales prices staying at 106% of original list price, the same ratio as last March. Condo buyers dropped their overbids slightly to 104% of list price versus 106% last March.
Like single family home prices, condo median prices rose this year, by 14.9% to $827,500, the highest ever on record. The number of sales was up by 5.1%, while the number of new listings dropped by 1.9%. New listings are down 7.8% for the first quarter compared to 2016.
The combination of fewer new listings combined with more sales caused inventory to drop from February’s 1.8 months of inventory to just 1 month.
Tags: Market Conditions, Market Update, Real Estate Market Report
This post was written by Rumana Jabeen