San Mateo County Real Estate Market Update – July 2020
July 15, 2020
The San Mateo County June sales data shows the tale of two markets.
The market for single-family homes is heating up. The cooling effect we saw during the peak of shelter-in-place is waning. Prices are rising again, albeit at a slower rate than earlier this year. Inventory is decreasing which makes it a more competitive market for buyers. Agents are reporting multiple offers and properties selling before they hit the market. Note that these are overall trends for the entire county. There is variability across different cities and price points.
The market for condos and townhouses is reflecting different trends. Prices are continuing to decline, and inventory is trending up significantly compared with the same three month period last year. This is not unexpected behavior – in a shifting market, condos and townhouses will lose their value faster, and recover slower, compared with single family homes. Buyers are getting increasingly sensitive to high HOA dues.
Buyer psychology seems to be getting back in alignment with the actual market fundamentals. During the more restrictive phases of shelter in place, buyers were expecting fire-sale prices that for the most part didn’t materialize. No buyer wants to overpay. There is a growing awareness that COVID did not trigger the long awaited market correction that we’ve seen in many parts of the country over the past few years. It did significantly reduce the number of sales over the past six months compared with the same period last year across all categories of residential real estate.
These are volatile times, and things can change very quickly. Now more than ever it’s important to have the most current information about the narrow market segments your clients are engaged in.
The information contained in this report is taken from a variety of sources including MLSListings, the City of San Francisco Planning Dept., the Federal Reserve Bank of San Francisco, the Bureau of Labor Statistics, The Conference Board and others. The data may have errors, omissions and be subject to revisions and is not warranted. It is deemed reliable but is not guaranteed. Questions may be directed to Keller Williams Peninsula Estates (650) 627-3700. DRE# 01906450Tags: Market Conditions, Market Update, Real Estate Market Trends, San Mateo County, San Mateo County Real Estate
This post was written by Rumana Jabeen