San Mateo County Real Estate Market Update – March 2021

The real estate market in Santa Mateo County is behaving differently according to housing type – single-family home versus condos and townhouses. Prices for single-family homes are appreciating sharply, while condo and townhome prices have continued their slide, though at a more gradual rate than before.

The median sale price of single-family homes is up 11.5%, up 17% from last month alone. Overbids are creeping up, currently at 4.9% which is only a modest rise from last year. Inventory is rising as we would expect heading into Spring, though it remains remarkably low, currently at 1.7 months. In a balanced market, equally favorable to buyers and sellers, inventory is generally between 4-6 months.

The pace of this market for single-family homes is fast. Days on market are down to 9 days. Buyers need to be ready to move quickly and aggressively to succeed in this ultra-competitive market. Competition is stiff – well-presented, well-priced homes are garnering frenzied interest. This is not a market for bargain hunters or the faint of heart.

The market for condos and townhomes is continuing to decline. Median sale prices are down 6.1%. Overbids have moved back into the positive territory, at 1.5% which is a modest increase over the same period last year. At 1.8 months, inventory is down from last month and lower than the same period last year. If this trend continues, declining inventory may stall the price declines. Condos and townhomes are selling quickly, currently at 14 days on market.

Though interest rates are gradually beginning to rise, overall demand is quite strong. In this environment, buyers are losing purchasing power with each passing month.

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This post was written by Rumana Jabeen

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