Market Update – March 2017
March 21, 2017
March Real Estate Market Report
The San Mateo County real estate market continues to experience strong buyer demand and an exceptionally low number of homes and condos for sale. The strong demand is supported by a clean sweep of positive economic indicators just posted by The Conference Board, which reported that consumer confidence is at a 15 year high, and the Leading Economic Index, CEO Confidence, Help-Wanted Online, and the Employment Trends Index all rose in February.
Mulesoft, a San Francisco software company, had its IPO last week and did even better than Snap on its first day of trading, with shares up 45% above initial offer price. Mulesoft has over 700 employees who will now be armed with a lot of cash, which could further add to the number of buyers competing for properties on the peninsula. Also, this was a shot in the arm for other pre-IPO companies in San Francisco and Silicon Valley and may increase the number of other IPO’s later this year, potentially adding to the peninsula buyer pool.
The Federal Reserve Bank raised its federal funds rate last week, with a second increase anticipated later in the year. The anticipated rate increase in March had already triggered a jump in mortgage rates, which now stand at 4.26% according to Mortgage News Daily. Most lenders are projecting a further increase in 30-year mortgage rates to around 5% by the end of the year.
On the following charts we see that the mid-peninsula single family home median sales price was up 11.7% year-on-year in February. The number of sales were down 3.5% and the number of new listings dropped sharply, by 20.8%. Inventory is still very low at 1.8 months, but double what it was last year at this time.
Similarly, the median sales price rose by 12.4% in condo/townhomes although there were far fewer sales, down 42.9%. The number of new listings in February also declined significantly, by 20.5%. Inventory is at 1.8 months, up from 1 month last year.
Tags: Real Estate Market Report
This post was written by Rumana Jabeen