San Mateo County Market Update March 2024

Thinking of putting your house on the market? You might be wondering if the timing is right. Well, worry no more – because the current housing market points towards a resounding yes!

Here's why: while there has been a slight increase in homes for sale compared to last year (by 15.6%), that number remains significantly lower than pre-pandemic levels. Compared to 2019, a more typical housing market, we're seeing a whopping nearly 40% fewer homes available!

What does this mean for sellers? With fewer houses on the market, yours is more likely to stand out and attract interest from potential buyers. This translates to a potentially faster sale and a stronger negotiating position – exactly what you want when selling your home.

So, if you've been contemplating putting a "For Sale" sign in the yard, now might be the perfect time to make your move!

I want to share some facets of the current market landscape and explore four reasons why now might be an excellent time to sell your house:

1. There's a Huge Inventory Imbalance

While it's true that inventory levels have seen a slight uptick these last few weeks compared to last year, it's crucial to consider the bigger picture. Compared to 2019, a pre-pandemic year representing a more "normal" market, the number of homes available for sale today is still nearly 40% lower than 2019. This stark difference creates a seller's advantage. With fewer houses competing for buyer attention, your property is more likely to stand out, potentially leading to a faster sale and higher offers.

2. Buyer Demand Remains Strong

Despite rising mortgage rates, buyer demand is still holding steady. Many potential buyers have been waiting on the sidelines for the right opportunity, and with inventory slowly increasing, they're now actively searching for their dream homes. This continued interest from buyers, coupled with the lower inventory levels, creates a favorable environment for sellers to capitalize on.

3. Make the Most of Your Equity

Home values have generally been on an upward trend in recent years. If you've owned your property for a while, you've likely accumulated significant equity. Selling your house during this time allows you to capitalize on this appreciation and potentially use the proceeds for various purposes, such as a down payment on a new home, debt consolidation, or investing in your future. See our Equity Reports below to understand how home values in your area have changed over 1 month, 1 year, 5 years, or 10 years.

4. Considering the Long Game: Avoid Trying to Time the Market

No one has a crystal ball, and predicting the future is not exactly a science. To complicate matters, market experts offer mixed opinions on the long-term trajectory of the housing market. Some anticipate a potential softening in home prices, and others believe the market will stabilize. Regardless of the specific forecast, it's important to remember your needs and goals for today when considering selling your home. By understanding the current market conditions and your individual needs, you can make an informed choice that aligns with your goals today and your long-term goals.

What are the opportunities for buyers?

While fewer homes on the market means demand increases. In the past, that meant bidding wars and incredibly high prices for buyers. However, our market is still in a transition phase. Though there is tremendous demand from buyers, for the most part, buyers seems somewhat restrained. We believe that as interest rates drop the amount buyers are willing to spend will increase, but until that time, only select, highly desirable properties are seeing tremendous amounts of activity and overbids.

So where's the opportunity? It's in the lack of competition. Many buyers are looking at homes with lower prices, or in general waiting on a drop in interest rates. Though we have seen some properties with 20+ offers in the past few weeks, most homes are receiving just a handful of offers to weigh. This means more of a chance to engage and negotiate with the sellers to find a middle ground that works for both parties.

For buyers we think this market is a golden opportunity that doesn't come often. Seize the moment!