February 2016 Market Update For SoMill

     

    Off to a Slow Start

    Was there a “Superbowl Effect” on the real estate market? It seems that there was some impact felt, as many sellers probably decided that an open house on Superbowl weekend might not be the best timing. There were only 78 new residential listings in San Mateo County in the week leading up to the Superbowl, while in the following week, we saw 139 (almost double!). The uptake in listings certainly bodes well for our market, where the inventory levels continued to be low at 1.3 months’ worth for the month of January in our county.

    While we still have yet to see whether 2016 will usher in a “calmer” season with more homes available for sale, I wanted to take a different route this month for my market update and talk a little bit about things that buyers and sellers alike should be aware of, not only in Millbrae, but in our area as a whole.

    But first, to the numbers for South Millbrae…

    Housing Statistics for South Millbrae (single family homes)

    November 2015 December 2015 January 2016
    # of New Listings 5 2 3
    Lowest Priced New Listing $1,295,000 $1,199,000 $1,550,000
    Highest Priced New Listing $2,250,000 $1,400,000 $2,398,000
    Median Price of New Listings $1,598,000 $1,299,500 $1,699,000
    # of Closed Sales 0 5 4
    Average Days on Market (Closed Sales) NA 19 53*
    Lowest Priced Closed Sale NA $956,000 $1,300,000
    Highest Priced Closed Sale NA $1,600,000 $1,650,000
    Median Closed Sale Price NA $1,251,000 $1,405,000
    Sale Price to List Price Ratio NA 99.5% 93.8%

    *DOM – due to 1373 Vista Grande, 147 days.  Otherwise, 22.

     

    From the numbers, it’s clear that prices are remaining fairly steady overall, while the activity in South Millbrae remains muted in terms of new listings. Again, we’ll see what happens in the months to come.

    As inventory continues to be scarce, some real estate agents have become more aggressive in their approach to buyer clients, especially when it comes to their own listings. Some would go so far as to guarantee that the buyer’s offer will be accepted if they work with them. I would really caution buyers to consider carefully whom you choose to represent you. Although representing both a buyer and seller is allowed in California, it can be a tricky thing to truly represent the “best interests” of both sides. There ARE cases when I’ve ended up representing both parties for some reason or another, but I would venture to say that agents who actively try to do this as a rule are probably going to end up shortchanging one party or the other.

    The other trend that we’re seeing a lot is the “pocket” or “off market” listing. For sellers, this can be a good thing in that they can often avoid the stress of preparing a home for market, having tons of people walking through, etc. The tradeoff is that there may be a sense that they might have been able to get more money if the house was placed on the market officially. For buyers, I would say that it’s more important than ever to have an agent who has a strong network of other agents in the area (and I’m happy to say that I do) and even better, to have those who are willing to make an extra effort to approach homeowners in order to find possible options for their clients. The one caveat would be that a savvy homeowner will want a premium price for their listings precisely because there is that allure of possibly getting a price on the open market. Is the “off market” trend a good or bad thing? I think there are different pros and cons to this and would be happy to hear others’ thoughts on this, but good or bad, it’s definitely something that we’ll continue to see for awhile.

    Here’s to hoping for a great spring season for all!

    Call me if you need any assistance in Mills Estates, Highlands or elsewhere in Millbrae. I’d be more than happy to discuss the current market’s activity, show homes from the current inventory and help you with any of your real estate needs in the community. You can always reach me at 650.636.3147 or jean@jeanjoh.com

    *Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.

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