Only in expensive San Mateo County would home prices of $1.2 million be a bargain. Not only that, but the gap between the Coastside and the rest of the county is now increasing to about $525,000. The strong second-quarter performance for both the county and coast propelled prices upward.
While both areas are at, or near, all-time highs, the price gains now seem more moderate, with the county showing a 2 percent decrease over the past 12 months and a 3 percent increase for the full year 2016. (The coast is up 4 percent over the first half of 2016 but down 1 percent over the full year.)
The average price in San Mateo County now stands at a new record high of $1,711,000 compared to $1,659,000 in full year 2016, $1,598,000 in 2015, $1,392,000 in 2012, $878,000 in 2009, and $1,210,000 in 2007. (Currently the average on the coast is about $1.19 million.) Over the past five years, county prices are up by 41 percent; the coast is up by 36 percent.
While prices peaked in 2007, sales volume has been declining since 2004 and is still off its highs. For the first half of this year, 1,992 homes sold compared to 1,906 in 2016, 2,346 in 2013, 1,725 in 2009 and 2,259 in 2007. Inventory has decreased to 414 homes, down 35 percent from last year (the coast is down 21 percent) to where it now represents 1.2 months’ supply of total listings. (Supply on the coast is at 3.4 months.)
Not surprisingly, all this has reduced average selling time to 20 days (Coastside to 43 days) compared to 22 days in 2014, 57 days in 2012, 79 days in 2009, and 28 days in…
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