San Mateo County Real Estate Market Update – February 2021

The trends continue. Sale prices of single-family homes in San Mateo County are continuing their strong climb, but not at the sky-high rates we saw in August through October of last year. Those rates were unsustainable – it isn’t a bad thing that they are no longer climbing that fast.

A quick look at other metrics – inventory is still extremely low favoring sellers. Sale activity is up significantly. Both new listing and the number of sales are sharply higher than in similar periods over the past two years. Overbidding isn’t really a factor – hovering at about 3%. The pace of the market is very fast. The median days on the market are down 38%.

Interest rates remain low and demand is strong. Lending guidelines are easing, which is going to release more money into the market. These forces will fuel this market in the near term. With each passing month, buyers are losing buying power.

We are seeing very different trends in the condo/townhome market, with the median sale price down 6% and dropping. Inventory is up almost 40%, but still an objectively low 2.1 months. Market activity is way up – almost 50% more listing than the same period last year. With only 25% more sales over the same period, inventory is going to start climbing quickly. The median days on the market is 28.

It could be that buyers are moving away from dense housing due to COVID related concerns. Or it may be the historic trend that a shifting market will see condo prices decline first, and faster than single-family homes. Whether this trend will change as broader segments of the population get vaccinated remains to be seen.

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This post was written by Rumana Jabeen

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