Looks Like This Could Be The Bottom of The Local Real Estate Market!
After looking at today’s statistics and chart you will notice a few things that show the market is coming back!
The trend line for “Active” Listings is leveling off. Number of listings in the “Active” status is only 4% higher than last year at this time.
At 23% higher than last year, the trend line for “Pending Sale” shows that homes are selling. In fact, we are higher for this time of the year in 2007 and 2008 and only one Pending Sale lower than 2006.
The number of “Month-to-date” Closed Escrows is down quite a bit, but that is just a residual of the slower market 30 – 45 days ago. The number of Pending Sales would indicate that this trend should be at its end.
In fact, of the 7 closed escrows in the City of San Mateo, 6 of them sold for over the asking price. That statistic tells me that:
1) The agents are pricing the properties more in-line with qualified buyers’ perception of value
2) Those buyers also perceive them as ‘good values” and have enough confidence in the future of the market to bid over the asking price
3) That San Mateo’s multiple offer sales are in the most active of the price ranges. Typically the properties that have sold for over the asking price in the other communities were in the same price ranges as San Mateo.
In the other communities where the properties are selling for below asking price, the differential between listing price and selling price is sometimes more than 10%. I know that pretty much any agent in the business would write an offer for at least 10% under the asking price if their client loved the house, there was no competition, and/or the property has been on the market for a considerable period of time. So, if a Seller has had their property on the market for 30 days or more and there have been no offers, it is safe to assume the home is overpriced by at least 10%.
Pricing Your Home To Sell!
Many sellers make a make a critical mistake by over pricing their home. Please remember, buyers will not purchase your home because of what you want or need, they will purchase it for market value, at that given time. The market value determines what your home is worth and you need to price it accordingly.
To make my point, would you sell your home for $50,000 less than the market value because a buyer liked it, and doesn’t want to move to a less desirable area? Probably not. But guess what, it works both ways, they aren’t going to pay you an extra $50,000 because of your want or needs.
Buyers make decisions based on value and what has recently sold. Whether it’s a buyer or sellers market, it’s very important to price your home correctly from day one. If not, you wont receive any offers and your home will just sit there and become a stale listing. At that point you will either have to do one of two things, reduce the price significantly or take it off the market.
I’d like to share a real scenario between a buyer and their agent. Each week, agents go on Broker Tour to see the new inventory available. After touring the homes, agents call their buyers with an update. When the buyer asks if they saw anything that might be a match for them, the agent says ” I saw a nice home, but it’s overpriced,” would you like to see it? The buyer almost always says no, not if it’s over priced.
If they say yes and decide to make an offer, they will offer way less because their agent told them it was too much in the first place.
Now, if they didn’t look at it. After weeks or months, your listing is stale and agents forget about it. It’s out of sight and out of mind.
At that time, the buyer asks the agent whatever happened to that home over on …. the agent says it was over priced and it didn’t sell. The buyers says let’s take a look at it. Believe me, If they like it they will make an offer for WAY BELOW what you were asking. Why, because if no one else was willing to pay your price, why would they. You can’t expect them to outbid themselves.
Sellers, when it comes time to list your home, hire an experienced agent who knows the area well, the value of your home, has the best marketing plan, and most importantly possesses the skills to make certain the possible price and terms can be negotiated for your property.
What seperates a good agent from a TOP agent is their knowledge and skills. Hire the person that you believe will do the best job for you and not the one who makes promises with no clear plan on how they will be delivered.
Mid-Peninsula Real Estate Market Report
Stats From: May 3rd, 2009 6:00AM
| City |
ACTIVE |
High (List Price) |
|
Median (List Price) |
|
Low (List Price) |
| Belmont |
56 |
$1,749,000 |
$974,000 |
$606,500 |
||
| Burlingame |
56 |
$2,900,000 |
$1,439,000 |
$595,000 |
||
| Foster City |
38 |
$2,290,000 |
$1,168,500 |
$769,000 |
||
| Hillsborough |
69 |
$18,000,000 |
$3,295,000 |
$1,064,000 |
||
| Redwood Shores |
15 |
$1,625,000 |
$1,128,000 |
$699,950 |
||
| San Mateo |
152 |
$2,695,000 |
$948,500 |
$379,000 |
||
|
|
||||||
| Total |
386 |
|||||
| City |
PENDING |
High (List Price) |
|
Median (List Price) |
|
Low (List Price) |
| Belmont |
24 |
$1,299,000 |
$812,475 |
$599,000 |
||
| Burlingame |
32 |
$3,298,000 |
$1,142,000 |
$599,000 |
||
| Foster City |
13 |
$1,499,999 |
$928,800 |
$790,550 |
||
| Hillsborough |
11 |
$4,690,000 |
$2,395,000 |
$1,775,000 |
||
| Redwood Shores |
8 |
$1,298,000 |
$1,083,444 |
$769,000 |
||
| San Mateo |
74 |
$3,100,000 |
$604,000 |
$375,000 |
||
| Total |
162 |
|||||
| City (April. C.O.E.) |
SOLD |
High (List Price) |
|
Median (List Price) |
|
Low (List Price) |
|
|
||||||
| Belmont |
12 |
$1,138,000 |
|
$767,500 |
|
$575,000 |
| Burlingame |
12 |
$3,100,000 |
|
$917,500 |
|
$601,000 |
| Foster City |
6 |
$1,215,000 |
|
$875,000 |
|
$780,000 |
| Hillsborough |
5 |
$5,100,000 |
|
$2,630,000 |
|
$2,100,000 |
| Redwood Shores |
3 |
$1,135,000 |
|
$998,000 |
|
$958,500 |
| San Mateo |
30 |
$1,700,000 |
|
$602,750 |
|
$360,000 |
|
|
||||||
| Total |
68 |
Please remember to read our webpage disclaimer, that statistics and all other information on this webpage/blog is deemed reliable, but not independently verified or guaranteed.
Stop being a SPECTATOR!
When is the best time to buy a home? This is a common question for home buyers right now and rightfully so. The answer to this question is very simple; when you find a home you absolutely love and you can afford, then the looking is over.
Right now home values are down, and so are interest rates. The stars usually don’t align this way; in most real estate markets you get one or the other, this time you get both. According to Author and investor David Bach, there hasn’t been a better time to buy in the last 3 decades.
So, why is everyone waiting? The answer to that is, there not. Buyers are jumping off the fence and starting to buy. I also see many investors buying up the entry level homes and many are paying CASH.
Sure, others are waiting, there waiting because of fear, and also waiting to see if the market has bottomed out. But, by the time they figure it out, the market will have already been on an upswing, and they will also have to deal with inflation.
Right now investors are gobbling up homes and there ecstatic others are discouraged. Their glad because buyers who are still on the fence, or scared to step up will soon be renting from them.
Listen, if you can’t afford a home this is no knock on you, but if you can; don’t jump but LEAP. Get pre-approved and start actively looking. These two things alone make you a player in the market. And once you’re a player finding the best time to buy becomes easy.
