As mentioned, itâ€™s about supply and demand. Currently, San Mateo Park has about 1.5 months of inventory, representing a sellerâ€™s market. A balanced market is considered 6 months of inventory and a buyerâ€™s market is more than 6 months of inventory. So, inventory is really low.
The two sales that closed in the last month spent 9 and 11 days on market & both sold for over the list price (although they were competitively priced). Currently, the four pending properties (3 of which are Cashin Co. listings, the company where I reside) spent an average of 25 days on market, 2 of which spent 10 and 11 days on market.
As far as appreciation over the last nine years: in 1998 the average sales price was $1,013,000 & in 2007 the average was $2,074,000. The 9 year period appreciation average is $111,000!!! Not bad- one gets to live in a fantastic community and enjoy solid appreciation.
Iâ€™d purchase in this community (or the adjacent communities of Burlingame and Hillsborough) if the numbers work.
Nate provides some good quantitative data.
It should also be noted that as the size of the house goes down, the price per sf goes up and visa-versa.
This is because the land value portion of the overal value is so large.
In San Mateo Park, I would estimate land value at close to $1M for a typical lot.
If you have a 1000sf and a 2000sf house on tne same size lot in the same location, the 1000sf property is NOT worth 1/2 the 2000sf property. The 1000sf could be worth $1.3M and the 2000sf could be worth $1.8M. Hope that makes sense.
Real estate is very local.
On the Peninsula in the most desirable residential neighborhoods with good schools, charming neighborhoods and proximity to exciting downtowns; prices HAVE NOT gone down despite what the newspapers say.
Yes it is supply and demand. Yes, it is the local economy which remains fairly strong.
The real estate bust has missed the Peninsula.
People comes from all over the world to find their "fame and fortune" in Silicon Valley and San Francicso that keeps our market strong.
when there are more homes than qualified buyers, prices lower
when there are more qualified buyers than the specifically desired type of home/neighborhood, prices rise. Areas where we see overall rising: San Mateo Park, Paly High & Gunn High sections of Palo Alto, Golden Triangle in Saratoga, and neighborhoods with Lynbrook, Monta Vista and Cupertino High.
Here you go -
Average price per square foot price for San Mateo Park:
Active listings - $737 price/square ft.
Pending listings - $731 price/square ft.
Sold listings (60 days) - $805 price/square ft.
These prices ARE up from previous months. Why...? Because the market is picking up as rates continue to remain stable and homes in "desirable neighborhoods" are really moving. We are seeing more transactions and activity over the last two months in the Peninsula market.