Low supply, high demand for San Mateo Co homes. Now, condos starting to catch up
As we move further and further into 2022, we’re getting a better look at the local real estate market over the past year, specifically when it comes to homes, condos, and townhomes in San Mateo County. We recently received data from the San Mateo County Association of Realtors, detailing some pretty interesting things. The data looks at January 2022 and compares it to data from January 2021 in terms of everything from the number of housing units on the market to sales price.
One of the biggest things we noticed has to do with the number of new single-family home listings hitting the market, and the number of listings left in inventory at the end of the month. The data drives home the point that inventory is way down right now. In January 2022, we saw 313 new listings for single-family homes in San Mateo County. By the end of the month, there were 250 homes. A year earlier, there were 375 new listings in January 2021 and 400 listings left in inventory at the end of the month.
That’s further proof of a major decrease in inventory levels. We’re seeing a smaller number of homes for sale, as San Mateo County continues to be a strong seller’s market. That’s great for sellers, but not so great for buyers as it means overbidding, multiple offers and homes selling for way above asking price.
The number of homes sold during the month of January wasn’t too big of a change from year to year, but homes aren’t staying on the market very long. In January 2021, the average number of days on the market for single-family homes in San Mateo County was 35. In 2022, it was 24 days. While December and January are not traditionally huge months for real estate, that’s not the case right now. This past December was hot, and so was this January.
In terms of the sales price for single-family homes, the numbers are up. In January 2021 the average sales price in San Mateo County was just over $2 million and the median was $1.6 million. In just one year’s time, the average sales price rose to $2.6 million this January and the median hit $1.888. The average was up about $600,000 and the median up more than $280,000 in just one year. We also saw an increase in the median price per square foot. In January 2021 it was $1002 and in January 2022 it was $1139.
So, what about homes selling above asking price? It’s happening with more and more homes in San Mateo County. In 2021, homes sold, on average, about three-percent over asking. By January 2022, homes were selling, on average, 10-percent over asking. Breaking it down a bit more in terms of the local area, as recently as this January, homes in San Bruno were selling at nine-percent over asking. It was 12-percent over asking in Redwood Shores, 14-percent over asking in Burlingame and 16-percent over asking in Pacifica and San Mateo.
It’s no secret that the single-family home market is extremely competitive right now, but we could start seeing some changes in the condo market as more and more big companies mandate their employees come back to the office. In January 2021, we saw 158 new condos and townhomes hit the market and 195 were left at the end of the month. In January 2022, 155 new condos and townhomes hit the market and 130 were left in inventory at the end of the month.
When it comes to sales, 93 condos and townhomes sold in January 2021 and 104 sold in January 2022. The average number of days on the market is starting to get closer to what we saw pre-Covid. It’s dropped from 39 to 32 days, on average. Generally, single-family homes do tend to sell faster, the market’s more competitive, they spend fewer days on the market, and they see a higher price per square foot than condos and townhomes.
The average sales price for San Mateo County condos and townhomes during January 2021 was $931,000 and the median sales price was $840,000. Jump forward to January 2022, and the average sales price was $993,000 and the median sales price $905,000. The condo market is coming back. If you’ve found yourself priced out of the single-family market lately, now might be the right time for you to get in on a condo.
For the first time in a long time, we’re seeing the average list price percentage received top the asking price. January data shows it was three-percent over asking for condos and townhomes in San Mateo County. The median price per square foot is also up. Essentially, we already knew it was a seller’s market for single-family homes in San Mateo County, but it’s now looking like the condo market is starting to catch up.
Of course, we’re all keeping close tabs on the potential for rising interest rates and what that could mean for the local housing market. There’s also the uncertainty in Ukraine, which could potentially impact the housing market, too. More likely, though, if the feds start raising rates, it’s likely we’ll see a lot of buyer demand. Remember, supply is very, very, low right now, so it will be interesting to see what happens.