North Peninsula - Intero Real Estate Market Report - February 2016

Buy.Sell.Stay.

February 2016 Market Report North Peninsula Belmont, Burlingame, Foster City, Hillsborough, Redwood City, Redwood Shores, San Carlos, San Mateo

2016 Intero Real Estate Services Inc., a Berkshire Hathaway affiliate and a wholly owned subsidiary of HomeServices of America, Inc. All rights reserved.

Data provided by Trendgraphix February 2016.. All information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker.

Executive Insights Home Sales Trend Upward The health of financial markets and a lack of inventory continue to be the biggest drivers of the Bay Area housing market. And with the stock market starting off the year strong, we’re also feeling a strong housing market here, with the expected seasonal slowing that often comes with the beginning of the year.

“The tempo of the Bay Area housing market is tied very closely to the financial markets,” said Tom Tognoli, President and CEO of Intero Real Estate. “So much of the Bay Area’s wealth is tied up in stock options and stock purchase plans. As the financial markets go, people’s attitudes and pocket books tend to follow.”

Many have been talking about the high-end of the housing market cooling off, which we’ve seen a bit. But that doesn’t mean no one’s in the market for high-end luxury homes. “Just last week, we sold a home in Atherton for over $8.5 million that was on the market for less than a week.” So it’s not a totally chilled market by any means.

It’s still very much a seller’s market in the Bay Area. And while a lack of inventory continues to be a major challenge for buyers that usually means a quicker sale at a great price for sellers, those who are selling to move up are also finding it frustrating. The good news is the number of active listings increased at the state level for the first time in five months in January, and the Bay Area was part of the trend with an 8% increase in homes for sale compared to the previous month.

“The fundamentals underlying the demand for housing fueled a healthy start to 2016,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. But she, along with other economists, continues to watch overall economic trends such as volatility in the equity market, that can potentially lead buyers and sellers to hold back and take a “wait-and-see” approach.

So the market is starting strong, but with lack of homes and the uncertainty of an election year, we could see some slower growth. We like to watch the housing market numbers month to month because we always see noticeable changes that help our agents assess pricing and bidding strategies. Let’s take a look at the important numbers broken down into categories that are easy to understand. This will help you get clear on what’s happening in your market that can impact your home sale or purchase.

Market Highlights North Peninsula

Total Homes for Sale

137

Luxury Homes for Sale*

30

*Homes for sale above $3 million.

Total Homes Sold

Average Days on Market

Average List Price

Average Sold Price

87

$2,940,000

19

$1,718,000

Inventory North Peninsula

Total Number Of Homes:

For Sale

Sold

50

61

50

87

99 97

137

152

156

159 172

156

108

131 15-Apr

124

131 15-Mar

79

90

100

97

118

145

148

150

185 189

189 193

201 179

187

200

214

226

250

0 14-Dec

15-Jan

15-Feb

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

16-Feb

It is a Seller’s Market Property Sales (Sold) February property sales were 87, down 10.3% from 97 in February of 2015 and 10.3% lower than the 97 sales last month.

Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 19 units of 16.1%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 38.4% compared to the previous month.

Property Under Contract (Pended) There was an increase of 52% in the pended properties in February, with 114 properties versus 75 last month. This month’s pended property sales were 22.4% lower than at this time last year.

Inventory By The Numbers Home Price Range

Homes For Sale

Year Over Year % Difference

< $500K

1

$500K $1M

17

-32%

$1M - $3M

89

37%

$3M - $5M

19

90%

$5M - $10M

8

-43%

$10M +

4

33%

0%

Pricing North Peninsula

Average Prices in $,000:

For Sale Price

Sold Price

4500 4000

$3,895

$3,892

3500 3000

$3,124 $2,703

$2,834 $2,604

$2,499

$2,580 $2,580

2500

$2,540 $2,226

$2,940

$2,441 $2,516 $2,499

2000 1500

$1,679 $1,643 $1,722 $1,669 $1,723 $1,544 $1,598

$1,850 $1,600

$1,750 $1,732 $1,671 $1,715

$1,718 $1,498

1000 500 0 14-Dec

15-Jan

15-Feb

15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

16-Feb

The Average For Sale Price is Neutral

The Average For Sale Price in February was $2,940,000, up 12.9% from $2,604,000 in February of 2015 and down 5.9% from $3,124,000 last month.

The Average Sold Price is Neutral

Pricing By The Numbers

The Average Sold Price in February was $1,718,000, up 2.3% from $1,679,000 in February of 2015 and up 14.7% from $1,498,000 last month.

The Median Sold Price is Appreciating

The Median Sold Price in February was $1,600,000, up 6.7% from $1,500,000 in February of 2015 and up 10.3% from $1,450,000 last month.

Average Price Per Square Foot.

$903

10.8% Month over Month

On The Market North Peninsula

Average Days On Market 35 30 30 25

24

23

22

21 19

20

16

18

17

18

19

18

19

15

15

12

10 5 0

14-Dec

15-Jan

15-Feb

15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

16-Feb

The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for February 2016 was 19, down 13.6% from 22 days last month and the same as in February of last year.

The Sold/Original List Price Ratio Remains Steady The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 106% is up 2.9% % from last month and down from 0.9% % in February of last year.

DOM By The Numbers Home Price Range

Days on Market

Year Over Year % Difference

< $500K

0

NA

$500K $1M

17

31%

$1M - $3M

20

43%

$3M - $5M

5

-86%

$5M - $10M

0

-100%

$10M +

0

NA