The market continues to be robust as we start to enter the typically busy summer season. Overall, the number of new listings coming on the market is increasing, which is normal for this time of year, but buyer demand is still strong so we expect prices to increase.
San Mateo County
The median sales price for single-family homes in San Mateo County increased 9% MTM (month-to-month) from $1,600,000 in March to $1,745,000 in April and increased 18% YOY (year-over-year). From March to April, the number of new listings increased 27% and the days on market remained the same at 11.
The median sales price for condos/townhomes increased 6% MTM from $950,000 in March to $1,010,000 in April and increased 32% YOY. The number of new listings decreased 8% from 156 in March to 143 in April. The median days on market increased slightly to 10 from 9.
Santa Clara County
In April, the median sales price for single-family homes in Santa Clara County decreased 2% to $1,420,000 from $1,454,000 in March, but increased 22% YOY. From March to April, the number of new listings increased 14% and the days on market remained the same at 9.
The median sales price for condos/townhomes increased 2% from $900,000 in March to $915,444 in April and increased 27% from April of 2017. The number of new listings increased 21% from 428 in March to 518 in April. The median days on market remained the same at 8.
New Laws Make ADUs Easier to Build
California’s lack of housing supply has driven home prices to record levels and the state is falling far short of meeting current and future housing demand. One trend that can help add to the home supply and affordability are Accessory Dwelling Units (ADUs), which are also known as granny flats, in-law units, junior units, backyard cottages, etc.
ADUs are an affordable type of home to construct because they do not require paying for land, major new infrastructure, or structured parking. They give homeowners the flexibility to share independent living areas with friends, family members, or others and receive extra monthly rental income.
Over the past couple of years, California passed new regulations that should make it easier and cheaper for homeowners to build an ADU on their property or turn an illegal unit into a legal one. The legislation made ADUs legal in all California cities and established design standards, that when met, allow ADU development to receive “ministerial approval” instead of discretionary approval. This means that ADU builders can apply for and receive construction permits over the counter at their city planning office, instead of from a planning commission or city council.
The laws will reduce or eliminate off-street parking requirements and utility hookup fees that homeowners face when they create a second unit. Homeowners still have to comply with local building codes, find a contractor, and arrange financing, if necessary.
At our next seminar on May 30th, we will be discussing the real estate market perspective and the state and local regulations of ADUs. Our guest speakers, Corbin Jones from OVID Design and Development and Steve Hotovec from Barastone, LLC, will discuss design options and financing opportunities.
We offer several seminars throughout the year to help provide information about different topics related to real estate purchases, sales, or ownership in general. If you or anyone you know is interested in joining us for that seminar, please see the details below.
May 30th – The Grassroots Housing Movements: Accessory Dwelling Units (in-law units)
June 20th – Guide to 1031 Exchanges
September 5th – Smart Homes
October 17th – Proposition 60/90
All of our seminars will be held on Wednesdays from 6:30 – 8:00 pm at the Borel Estates Building, 1700 S. El Camino Real, San Mateo, CA 94402.
The seminars are free, but seating is limited, so make sure to reserve your seat by contacting me directly or by signing up online at: https://tinyurl.com/perisson2018.
Looking forward to seeing you there!