Buy.Sell.Stay. May 2016 Market Report North Peninsula Belmont, Burlingame, Foster City, Hillsborough, Redwood City, Redwood Shores, San Carlos, San Mateo
Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix June 2016
Executive Insights The Summer Swell is Slashing Inventory Last month saw a flood of inventory hit the market like we hadn’t seen in a while. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month. But that excess inventory didn’t last long and May saw the listing inventory drop drastically in almost every part of the Bay Area. As we predicted, the strong job market and pent up demand for inventory allowed those people that have been standing on the sidelines to get back in the home-buying game. And they didn’t waste any time as sold properties for the month of May were up significantly month-over-month in almost all parts of the Bay Area. This aggressive move on the increased April inventory is also chipping away at the days on market (DOM) for sellers. As buyers are trying to secure the purchase of available properties, we are seeing the DOM on a downward trend across the region. This trend should continue as the inventory continues to stay low into the later summer months. Another win for sellers is the fact that buyers have access to amazing mortgage rates right now. Here’s an excerpt from Realtor.com from June 13, 2016: “The national average rate for a 30-year fixed mortgage is 3.63%, an increase from April but far below May 2015’s 4.12%. Realtor.com staffer Jonathan Smoke explains that with the Fed likely not raising rates this summer but likely raising them again by this time next year, the time is now to lock in.” This mortgage rate news is going to allow buyers to be more aggressive with their offers and more than likely keep inventory low. In turn we will continue to see multiple offers and over asking prices in the most desirable regions of the Bay Area. So in the blink of an eye, all those houses that hit the market in April have new buyers calling them home. It looks like this roller coaster of a real estate market will continue to keep us on our toes into the next several months. So continue to keep an eye on your individual region and let us help you become a more informed home buyer or seller.
Market Highlights North Peninsula
Total Homes for Sale
195
Luxury Homes for Sale*
40
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
197 $2,734,000
16
$1,815,000
Inventory North Peninsula
Total Number Of Homes:
For Sale
Sold
195 197
173
197 140 124
89
99 97 61
50
137
152
108
156
159 172
156
148
15-Apr 15-May 15-Jun
185 189
189 193
201 131
15-Mar
100
124
131
150
179
187
200
214
226
250
0 15-Jul
15-Aug 15-Sep
15-Oct
15-Nov 15-Dec 16-Jan
16-Feb 16-Mar
16-Apr 16-May
It is a Seller’s Market Property Sales (Sold) May property sales were 197, down 2% from 201 in May of 2015 and 13.9% higher than the 173 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 71 units of 57.3%. 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 down 1% compared to the previous month. Property Under Contract (Pended) There was an increase of 20.9% in the pended properties in May, with 226 properties versus 187 last month. This month’s pended property sales were 2.7% higher than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
0
N/A
$500K $1M
19
-17.4%
$1M - $3M
136
81.3%
$3M - $5M
18
80%
$5M - $10M
19
46.2%
$10M +
3
0%
Pricing North Peninsula
Average Prices in $,000:
For Sale Price
Sold Price
4500 $3,892
4000 3500 3000
$3,124 $2,834
$2,499 $2,580 $2,580
$2,540 $2,226
2500
$2,940 $2,960
$2,441 $2,516 $2,499
$2,714 $2,734
2000 1500
$1,643 $1,722 $1,669 $1,723
$1,850
$1,600
$1,750 $1,732 $1,671 $1,715
15-Aug
15-Sep
1000
$1,498
$1,808 $1,815 $1,705 $1,745
500 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Oct
15-Nov
The Average For Sale Price is Neutral The Average For Sale Price in May was $2,734,000, up 6% from $2,580,000 in May of 2015 and up 0.7% from $2,714,000 last month. The Average Sold Price is Appreciating The Average Sold Price in May was $1,815,000, up 8.7% from $1,669,000 in May of 2015 and up 0.4% from $1,808,000 last month. The Median Sold Price is Appreciating The Median Sold Price in May was $1,588,000, up 3.8% from $1,530,000 in May of 2015 and up 5.5% from $1,505,000 last month.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
Pricing By The Numbers
Average Price Per Square Foot.
$896
0.2%
Month over Month
On The Market North Peninsula
Average Days On Market
30 23
25 20 16
18
17
15
18
19
18
21
24
22 19
16
16
16-Apr
16-May
15 12
10 5 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
The Days on Market Shows Downward 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 May 2016 was 16, the same as last month and up 33.3% from 12 days in May 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 105% is down 0.9% from last month and down from 5.4% in May of last year.
15-Dec
16-Jan
16-Feb
16-Mar
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
0
N/A
$500K $1M
22
50%
$1M - $3M
16
25%
$3M - $5M
14
0%
$5M - $10M
1
-600%
$10M +
0
N/A