May 24th, 2023: Real Estate Trends In The Bay Area And San Mateo
Updated: Jul 21
KP Corner (Incl. OFF MARKET properties)
Mortgage Rates & The Stock Market
525 CASTILIAN WAY, SAN MATEO - 4 bedroom, 2 bath, 2-car garage
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
From May 19th to May 27th, 2023
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Little man is enjoying ice cream and solid foods again after his bout with pneumonia. Thank you all again for your support and prayers. Seriously couldn't have done it without all of you!
How Is The Market?
We as your eyes and ears in the local real estate markets are seeing the shortage of inventory keeping home prices at or near pre-pandemic levels, with buyers competing on well priced homes that have multiple offers to get at or above asking prices.
What do we mean by well priced? Realtors are pricing their homes more conservatively to incentivize competition. The unfulfilled demand over the last 6 months has also kept numerous buyers in the market longer than normal.
Is this across all metros and home types? No, there is a mix.
How do we know this? Check out the graphs below... Days on Market (DOM) Sales Inventory, and Sales Price
Days On Market (with List to Sales Price ratios)
Single Family homes across the 5 counties - DOM
Key Take-Away: Days to sell a single family home have fallen below 30 (indicating a HOT seller's market) across all counties (except San Francisco) while we are seeing sales prices going over list across counties (2% to 7%).
Condos across the 5 counties - DOM
Key Take-Away: Days to sell a condos have gone up in San Mateo and Contra Costa but have fallen across the other 3 counties. All are below 40 days except San Francisco. Sales prices are at or just over list (by 2%).
Across the Bay Area, condos inventory is the lowest since February 2008 and single family homes are still hovering near record lows.
Single Family homes across the 5 counties - Inventory
Key Take-Away: Sold inventory and active inventory are still near historic lows, correlating to the short days on market and over asking prices.
Condos across the 5 counties - Inventory
Key Take-Away: Active inventory of condos in San Francisco and Santa Clara are higher than the other counties due to the longer amount of time to sell while still achieving their listing prices.
Single Family homes across the 5 counties - Sales Price
Key Take-Away: The 5 counties overall are experiencing an increase in sales prices above recent lows and matching pandemic pricing in some counties.
Condos across the 5 counties - Sales Price
Key Take-Away: Sales have been somewhat flat for the last 5 years.
What's Selling RIGHT Now?
Those that are pending, i.e. just went into contract....
Here are the pending details for those interested...
Real estate that sold in the last 30 days, i.e. deed recorded and buyers now have the keys....
Here are the sold details for those interested...
City of San Mateo real estate (year over year)
The month of April in 2022 was the peak of sales prices. Comparing April 2023 to 2022 for both single family homes and condos / townhouses, we can see...
Less inventory is now being sold and listed
Condos and townhouses saw a median sales price decrease
Average price per square foot has decreased
Days on market has crept up but still a hot seller's market
Homes are going for just around asking
Mortgage Rates & The Stock Market
Rates continued upward with the Debt Ceiling and budget discussions. Since early April to now, rates have gone up 70 basis points to 6.82% for a 30-year fixed mortgage.
Similar to last month, the stock market (in general) is doing well and the technology sector (QQQ) 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 4.6% for 10/1 ARMS. Our lenders also may value your RSUs better than others. Reach out and tap into our network.
Advice For Our Buyers
Is now a good time to buy?
Yes!! Although the market is heating up again, sellers are still entertaining concessions, below asking prices, and contingencies if your offers are strong.
When will be THE BEST time to buy (i.e. market bottom)?
It is hard to know when the bottom is and once we do, it has probably passed us. The real questions are do you have a family need and is this a long-term purchase? If the answer is yes to both of these questions, then it is a VERY good time to buy. For those of you who are speculating, remember that when the market turns, it turns quickly and with the market down 15% to 20% now, it is not a bad time to get in.
How Can We Help?
We work with the best lenders who are able to beat the current interest rates (some as low as 4.6% on a 10/1 ARM).
Click "Search For Homes" to search for homes based on your specific financial situation before you contact a lender.
Investing or not sure which areas to look in? Click "Explore Markets" to 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.
Once you are ready to move from Research -> Actively Looking, please give me a call.
Advice For Our Sellers
Is now a good time to sell?
Prices are rebounding. If your family has a need and you've owned your home for more than 2 years, the next best time to list will be in the late summer. However, preparing your home and marketing it in a challenging market takes (precious) time. Start those conversations with your realtor now!
How Can We Help?
We have a $0 down / 0% renovation program in which you don't need to pay back for 1 year, giving you flexibility on when to sell. The goal is for every $1 spent on renovations will 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)