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  • Writer's pictureKevin Peterson

June 27th, 2023: Real Estate Trends In The Bay Area And San Mateo

Updated: Jul 21, 2023

 

KP Corner


  • Situation: Our seller faced large capital gain taxes when selling their outdated home. During the down market in the fall last year, we gathered multiple investor offers (off market) to establish a baseline price. Then...

  • Solution:

    1. Created a Deferred Sales Trust to save over $400K in capital gain taxes.

    2. Scoped and managed full home renovation in 12 weeks, which

    3. Generated a 200% return.


525 Castilian Way San Mateo recently sold by Kevin Peterson at KPeterson.realty

UNDER CONTRACT:

  • Off Market (Redwood Shores) - 4 bedroom, 3 bath, 2-car garage


OFF MARKET PROPERTIES:

  • (San Mateo) 3 bedroom, 2 bath, 2-car garage in Foothills Terrace cul-de-sac

  • (San Mateo) 3 bedroom, 2 bath, 2-car garage in Beresford

  • (Santa Cruz) 4 bedroom, 5 bath, 1-car garage on oversized lot, renovated throughout. Easy access to beaches, shopping, downtown and back to the Bay Area

  • (Redwood Shores) 3 bedroom, 2 bath townhouse


Rest & Relaxation In Tahoe:

  • To celebrate the KP Princess' first graduation (and the sale of a few homes), we headed to Tahoe as a family for some kayaking, hiking and pool time.



 

How Are The SF Bay Area Real Estate Markets?


The shortage of inventory continues to keep home prices steady at or near pre-pandemic levels, with buyers competing on homes that have multiple offers, despite interest rates continuing to go up.


We know this because across the Bay Area, we see...

  • Days on Market, i.e. DOM - Averaging 30 days or less while homes are selling above asking price.

  • Sales Inventory - Still near historic lows due to sellers' cheap mortgages and lack of inventory to upgrade or downsize.

  • Sales Price - Almost all counties are back to pre-pandemic levels, except San Francisco.

SF Bay Area Real Estate Trends - Month over Month (MoM)

What does an average sales price mean? If we generalize the property type and the various price points that homes sell at, we lose the nuance of the market happenings.


Therefore, the below tables are broken into condo, single family home and townhouse. Highlighted in green are items that are helping keep the Bay Area real estate prices up in comparison to last month's metrics, including:

  • Higher price per square foot

  • Fewer days on market

  • Fewer number of homes sold (i.e. less inventory)

  • Higher sales price to list price ratio



Interesting take aways....

  • Around the Bay, $800K to $1.3M are selling the most volume, with San Francisco single family homes going 16% over asking.

  • Homes priced over $3.3M are still selling just as quickly as lower price points but are going slightly below asking.

  • San Mateo county and the Mid-Peninsula homes are still seeing fewer days on market to sell but the percentage over asking is smaller this last month than in May.

Bay Area Real Estate Trends - Year over Year (YoY)

Here's the data to support the month over month price growth (supply versus demand) we are currently experiencing. These charts illustrate which price points are moving the most in their relative markets.


Single family homes


Condos


 

What's Selling The Most RIGHT Now?


Those that are pending, i.e. just went into contract....


SF Bay Area real estate trends June 2023

Here are the pending details for those interested...


SF Bay Area real estate trends June 2023

 

City of San Mateo Real Estate Trends (MoM + YoY)


The month of April in 2022 was the peak of sales prices. Comparing April, May, and June for both single family homes and condos / townhouses, we can see...

  • Less inventory is now being sold and listed

  • Single family homes median sales price decreased in April due to the number of lower quartile (i.e. smaller homes) units compared to upper quartile (i.e. larger homes)

  • Average price per square foot has decreased

  • Days on market crept up in April but back to a hot seller's market in May

  • Single family homes are going over asking by more than 7% and condos by 2%.


Single Family Homes


Condos


 

Mortgage Rates & The Stock Market

  • Rates continue upward. “The market had previously priced in rate cuts by the end of 2023, so there will be an adjustment to these new expectations that could put some upward pressure on interest rates in the near term.” (Danielle Hale, chief economist at Realtor.com)

  • The stock market (in general) is doing well and the technology sector has been outpacing the markets.

  • At KPeterson.realty, we know not every lender is created equal and we work with lenders who's rates today are around 5.1% for 10/1 ARMS. Our lenders also may value your RSUs better than others. Reach out and tap into our network.



 

How We Help Our Buyers

  • We work with the best lenders who are able to beat the current interest rates (some as low as 5.1% on a 10/1 ARM).

  • Search For Homes by customizing your financial situation before contacting a lender to determine what you can afford.

  • Investing or not sure which areas to look in? Explore Markets to generate reports that analyze a city by days on market, average home price, price per square foot, average number of bedrooms / bathrooms / square feet in YOUR price point.




How We Help Our Sellers

  • We have a $0 down / 0% renovation program in which you don't need to pay back for one year, giving you flexibility on when to sell. The goal is for every $1 spent on renovations to net (on average) a $2 to $4 return on investment. Every family has a unique real estate scenario based on their needs and circumstances. Feel free to schedule a consultation with me today.

  • Click "What's My Home Worth" to find out the rough value of your home and automatically monitor it monthly. It also shows you various options for your equity (refi, home equity line or loan, etc).

  • If you'd like a more specific valuation of your home, give me a call.


Check out our last few or peruse all of them at https://www.kpeterson.realty/blog

  • Mar 16th: What Happened To Bay Area Real Estate In February?

  • Feb 23rd: Which Bay Area Cities Are Selling In Under 20 Days?

  • Feb 14th: What Is Selling (Year To Date) In The Bay Area And Mid-Peninsula?

  • Feb 6th: What Happened To Bay Area Real Estate In January?

  • Jan 30th: Layoffs + Bay Areas Experiencing Biggest Price Drops And Gains

  • Jan 22nd: Which Bay Area Cities Are Selling In Under 30 Days?

  • Jan 16th: Is The Market Showing Signs Of Waking Up?

  • Jan 9th: Bay Area Monthly Update + 2023 Outlook

  • Dec 26: San Mateo & Santa Clara County City Comparisons

  • Dec 18th: Did The FED Just Kill The Bay Area Real Estate Market?

  • Dec 10th: What Happened To My Home Value? (San Mateo, Foster City, Redwood Shores)

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