May Market Update
/The spring market heat up is officially here! It’s so busy that this newsletter is 6 days late to go out. Time is flying by!
In both the Peninsula and in San Francisco, single-family homes priced under $2,000,000 are hot. $1.5M and below is smokin’ hot! The really nice listings are getting as many as 38 disclosure requests and multiple offers within 7 days on the market. This is fueled by the fact that rates are still at a low, with 30-year fixed rates (for great credit) hovering just under 4% APR and buyers are looking to lock in. Also, tax season is officially over and buyers know where they stand and what they can afford.
According to stagers I work with, lots of new listings are getting prepped to hit the market. But with 38 disclosure packages out, that also means that the buyers are also out there in droves ready to pull the trigger. There are currently 40 single family home listings in San Mateo County priced under $1M and 273 homes priced under $2M. If your budget is to stay under $1M, you may have your work cut out for you. Make sure you’re ready with all your ducks in a row to have a chance.
In speaking with a few loan agents I work with, they agree that the properties priced under $2M, (especially those in good school districts) are the hot commodity. Buyers are young couples or small families with double income, great jobs and large down payments. They are fully ready when they apply for the loan and are ready to hit the ground running. Closings are taking place between 21 and 30 days.
Agents that I spoke to are having to write several offers, suffering a couple losing offers before landing a home. The non-contingent offers are back in action and buyers in this market place who are serious about buying a home quickly get wind of what they need to do to compete.
Condos are not getting the same action as the single family homes and entry-level condos I feel have flat lined to stable pricing. For example, one bedroom condos in San Bruno are sticking to the $510k - $550k range. As for the East Bay, areas like Berkeley and Piedmont share the same market heat as the homes in Burlingame, Millbrae and San Mateo. As mentioned before, neighborhood pricing is driven by the school districts, so wherever the schools are rated high 9’s or 10’s, you can bet that is where the buyers are concentrating.
Ultra luxury homes that were sitting on the market over 90 days in Tiburon and Belvedere are now getting into contract. In speaking with an agent in that market, he told me that the buyers are young tech families with loads of cash. Looks like they are now coming out of the woodwork and taking a plunge into homeownership. The entry level market for Hillsborough homes (under $3.8m) is also seeing a lot of action.
Sorry this newsletter is late, but please do call Hatch Realty Group if you have any questions about your particular market. We are happy to help!