Further signs of a cooling market are showing up in the San Mateo County housing market data. Last month marked the first time in recent memory that the overall trend in prices for single family homes in San Mateo County was negative. That trend accelerated this month, with prices down almost 5% compared with the same period last year. Inventory continues to rise with levels up almost 50% compared with the same period last year. Objectively inventory levels are still considered low, and it remains a strong seller’s market.
Properties are taking longer to sell, with the average days on market up steeply. With that said, most properties are selling in under a month. Overbids trended up a bit from last month, but are still lower than last year.
The Wall Street Journal reported this week that the Fed is evaluating their target inflation rate, and “is in no rush to raise interest rates” in the face of the recent market fluctuations and a cooling of the global economy. This is good news for the real estate market – lower interest rates increase buying power for buyers and support strong sales prices for sellers.
As more buyers enter the Spring buying season, expect continued competition for entry-level homes, but with
fewer multiple offers and less exuberant overbid levels.
|Data Ending February 2019||Single Family Residences (SFR)||% Change Year Over Year||Condos/ Townhouses||% Change Year Over Year|
|Median Sales Price ($USD)||$1,420,000||-11.5%||$841,500||-9.6%|
|New Listings (#)||367||-1.87%||127||-1.55%|
|Homes Sold (#)||205||-10.48%||80||-2.44%|
|Months of Inventory||2.1||50.00%||1.6||60.00%|
|Median Days on Market (DOM)||13||18.18%||15||66.67%|
|Average Days on Market (DOM)||29||38.10%||31||158.33%|