San Mateo County Real Estate Market Update – June 2021

Prices in San Mateo County posted strong gains last month across both single-family homes and condos/townhouses. For single-family homes, median sale prices have continued to accelerate. This is great news for sellers, but this rate of growth is not sustainable.

Condos and townhouses posted strong price gains last month and are poised to cross back into positive growth territory next month if these trends continue. Contributing to this strengthening of prices my be market fatigue as buyers give up on finding a single-family home at an affordable price and opt for a townhouse or condo instead.

Single-family home buyers are facing a frenetic buying environment where multiple offers and substantial overbids are the norm and properties are selling very quickly. Condos/townhomes are also selling quickly, but at a modest premium over list price.

There is no immediate indication that anything is going to change. While the Fed is now signaling that interest rates will begin to rise in 2023 as the economy regains its footing, it’s unlikely that will have a direct impact on today’s Bay Area real estate market.

With that said, this is a segmented market, and depending on the price of the property, and the area, the trends show up very differently. Some markets are stalled or starting to soften. Whether you’re buying or selling, it’s important to understand how the market is behaving in the relevant area/price.

It remains the case that time is not on the side of buyers in this market. With each passing month, their buying power is going down. Inventory is extremely low. Mortgage rates remain low. COVID restrictions are ending and things are roaring back to life which will likely only fuel this proverbial fire.

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This post was written by Rumana Jabeen

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