San Mateo, the second largest city in the county, had 103 Condos and Townhouses for sale last week, and believe it or not, this is a reduction from previous weeks.  The Median Price was $450,000.  The Average Price was $552,510 with the least expensive unit priced at $238,000 (a steal of a price for a condo) and the most expensive was $2,050,000 topping anything for sale in single family homes last week. It’s taking longer and longer to sell what is referred to as a Class-2 property (Condo, townhouse, TIC), which is now 134 days.  Almost half of all listings have seen price reductions and we are seeing quite a few Short Sales and Bank Owned REO’s as well.  We are sitting in a Cold! Buyer’s Market and have been there for a while.

The median sized condo in San Mateo has 2 bedrooms, 2 bathrooms is around 1100 square feet and is about 27 years old.

Unlike the single family homes Quartiles, these don’t necessarily fall into different zip codes. There are condos and townhouses in every zip code in San Mateo.  The Higher end condos, often the newest or in the some of the nicest areas are larger, were built only to be condos and not converted from apartments, and appear to be selling a little faster than the other Quartiles.

I am asked whether the market has hit bottom yet and you can get an idea of a market by looking at the Median Prices over time.  We are looking at a 2 year picture here, from the peak of the market in early spring 2007 until last week.  Prices have hit bottom.  They are back to 2002 levels and  with some of the amazing loan packages finally coming out, you can buy some great properties for yourself, your family or for investment with a POSITIVE CASH FLOW.

Our research comes from Altos Research and they have developed a way to track the supply and demand of real estate including market conditions.  This Index spells out the balance between a Seller’s Market and a Buyer’s Market.  The use the index of 30 to bridge the gap and we have been in a Buyer’s Market in San Mateo for condos for a very long time.  Right now it stands at 17, for a Cold! Buyer’s Market.

94404

This zip code is shared by Foster City but the small part of San Mateo that has properties within it are almost entirely what we call Class 2 – Condos and Townhouses.

These condos are east of 101 in Mariner’s Island, Edgewater Isle and Harbor Town.  They are mostly around  29 years old, in very nicely kept complexes with nice amenities.  The townhouses there are deeded condo as the unit does not own the land it is sitting on.   The Median Price is $559,995, and the  Average Price is $563,526. These are mostly 2 bedrooms and 2 baths, usually have fireplaces, and some even have water views.  It’s taking over 100 days to sell most of them, which is an increase from previous weeks.  Nothing sold last week and there were 15 listings.  Altos Research places this Zip Code as a Cold!Buyer’s Market at 10, making this the worst performing area in San Mateo.

The 94404 zip hit bottom early last year and has been juggling around the middle $500,000′s for a couple of months.  The peak of the market in this zip was around March of 2007.

The picture of the supply and demand of the 94404 zip for Condos is pretty amazing and indicates that there are many more condos for sale in this zip code then there are buyers right now.  What an opportunity for Investors!

94403

This zip is primarily the southern part of San Mateo, with some condos in Los Prados – where the least expensive units sit (these were converted from apartments in the 1980′s).  West of 101, there are a bunch of newer units near Bay Meadows, near City Hall, and many up in the hills and in the Highlands.  The Median Price last week was $366,500.  The Average Price was $384,259 and the least expensive was $250,000 and most expensive $639,000.  It’s taking longer to sell condos in this zip and there were 20 for sale last week and only 2 were either sold, canceled, withdrawn or had expired listing agreements.

When you look at the chart for the Median Price of condos in 94403 like every where else, prices have gone down. There was an up tic last week, perhaps due to the sale of the two condos?

The two charts that will give you a real picture of a real estate market are the Median Price and the Market Action Index.  The Market Action Index has held consistent around 20 for about 18 months.  Some week it’s up a little, the next week it’s down a little but this Zip Code is steady at 18 right now.  There are several months of inventory here to select from and not too many Short Sales or Bank Owned REO’s, yet.

94402

This zip, 94402, falls into the higher priced part of town so it’s expected that the Median Price will be higher and it was $758,500 last week.  Average price was lower, which is unusal for sure, at $754,140.  The least expensive unit in 94402 was $349,000 and most expensive was $950,000.  The majority of condos in this zip are in the Baywood area right near the Library on 3rd Avenue, 4th Avenue and 5th Avenue.  And south toward Highway 92 skirting El Camino Real.  Townhouses are tucked into side streets.  We have seen several new developments here, too.  Median size for these condos is 3 bedrooms and 2 baths.  They’re larger at a median near 1700 square feet.  Many of the complexes in 94402 attract Empty Nester’s, downsizing from Hillsborough homes.  This zip attracts the most interest in the City of San Mateo.

Looking at the chart for the Median Price for 94402 you get the impression the bottom fell out of the market last January, 2008, with such a dramatic drop.  Some of the reasons were there had been a new high end development that sold out late 2007 and everything else coming on the market was priced dramatically lower.  It sure makes for an exciting chart,though, but as you can see 2008 was pretty steady price wise until 4th Quarter and prices rose.  It really only takes a couple of listings and sales above the median to make such a difference, too.  When the inventory is only 18 units for sale, and only 2 sold last week, you can see why this happens.

This is why you need to look at both the Market Action Index and the Median price to get a true picture of the 94402 condo market.  Right now, this zip code stands as a Cool Buyer’s Market at 20. We havent’ seen a Cool Market in a long time!  The average length of time condos are listed is dropping, the median price is dropping and people are out there buying.

94401

What makes things so interesting when writing about this market by zip code is when I get to the 94401 zip.  When it comes to houses, it’s in the tank, but when I come to Condo’s, it’s not quite drowning.  This area covers downtown San Mateo where several senior condo developments sit, one very high end condo sits and lots of townhouses and Woodlake sits.  There is a huge cross section of property in the 94401 zip.  The Median price last week was $434,500 and it was rising.  The Average Price was $543,919.  The least expensive condo was $238,000 and the most expensive was $2,050,000.  There are currently 50 lisitings and only 2 were either sold, or otherwise removed from the market.  The Median age for a condo on this side of town is 25 years old and it’s likely to be 2 bedrooms and 1 bath, making it on the smaller side at around 1000 square feet.  That’s median size.  The $2 million dollar place is huge with views and is only a couple of years old. Almost half of all the Class 2 listings in San Mateo were found in the 94401 zip code.

Median Price is on a downward trend, but bottom was hit around the first of the year and we’re bounching upward now.  But we need to look further to get a better picture of the market for 94401.

Here’s the rest of the story.  The Market Action Index for Class 2 Condos and Townhouses in 94401 is at 14.  It’s not the lowest in the city but it’s low and considered a Cold! Buyer’s Market.  This area has great investment property and if you’re looking to invest here’s the place.  There are loads of condos to look at and select from.  This zip also has seen many Short Sales and Bank Owned REO’s as previous buyers, timing the market at it’s high, bought with no money down and loans that would reset within 2 or 3 years.

That’s the story for San Mateo.  If you’d like to see a full report please email us or call at 650-696-2820.

The City of San Mateo had 140 houses for sale last week with a Median price of $677,000.  The Average price of those houses for sale was $820,827, with the least expensive house listed at $399,000 – something we haven’t seen for years.  The most expensive house was listed at $1,998,000.  Obviously, there is a dramatic difference between the least expensive and the most expensive house and location is only part of the reason.  Seven houses were either sold, canceled, expired or withdrawn, but likely they were all 7 were sold.  The time it takes to sell a home in San Mateo has gone up and is now averaging 109 days.  Our research company, Altos Research calls the City of San Mateo a Cold! Buyer’s Market.

San Mateo, the second largest city in San Mateo County, has four zip codes and I’ll go over the difference in the real estate market within each zip a little later.  Altos Research likes to divide their research into quarters, or Quartiles.  Quartile One makes up the most expensive group of houses down to Quartile Four, with the entry level homes, or the least expensive.  Each of these Quartiles generally fall into different parts of the city, but not always.  The First and Second Quartiles are selling faster than the Third and Fourth Quartile, yet all of them have a median of 3 bedrooms and either 1 or 2+ baths.  There is a slight difference in the median age of the homes in the different Quartiles, and of course, the square footage or size of the house is different.

The chart showing the decline in Median Price for the City of San Mateo is quite dramatic as it has dropped from the peak around the 4th Quarter 2006 to 1st Quarter 2007.  Everyone is curious if the market has dropped out completely and the Median Price isn’t always going to show this but it is interesting to see prices have been bumping up a little this week.  What will really tell you how the market is doing is by looking at the Market Action Index.

Altos Research developed a way to measure the fluctuation of supply and demand in the real estate market and by analyzing those fluctuations you can get a great picture of what a real estate market is all about.  The dramatic drop in October of 2007 was not the market but a change in the way Altos Research crunched the data.  The market was beginning to drop at that time but so dramatically.  The Index runs from zero to fifty.  The number 30 is the delineation between a Seller’s Market and a Buyer’s Market.  The closer you get to the number 30 the warmer or cooler you become.  The 90-day Market Action Index for the City of San Mateo is at 18, a Strong Buyer’s Market.  This means there is several months of housing inventory on the market and anyone considering buying in San Mateo has a fairly good selection.

So what’s the difference between the other zip codes if the median Market Action Index of the City is 18?  Let’s take a look by beginning with Quartile One.

94402

The most expensive homes in San Mateo are generally found in the 94402 Zip Code. These homes are found mostly west of El Camino Real from the Burlingame border where San Mateo Park sits to highway 92 and encompassing Baywood, Aragon, Baywood Knolls, Parrott Park and  the homes near Aragon High School.  This is Quartile One. The Median Price for homes in this zip last week, and for most of the last part of 2008, have hovered around $1,200,000.  The average priced home was $1,138,818,  The least expensive home was $432,500 and the most expensive was $1,998,000.  Both of these extremes were in teh 94402 zip code.  We are seeing an uptick in the number of days on the market to 96 and there were 44 houses for sale last week and 2 sold.  The average sized home in 94402 is about 1800 square feet on a lot between 5000 and 6500 square feet in size and it’s 58 years old.

The Market Action Index says the 94402 Zip Code is sitting at 16 and that’s considered a Cold! Buyer’s Market. The reason for this is that demand is very low for the higher priced homes due to the difficulty in getting mortgages.  These homes are what we refer to as “move-up” properties and in order to move-up you need to sell your current house.  This is a problem today when there’s competition with Short Sales and the few Foreclosures we’re seeing in the Quartile Two.  Looking at this chart you might say, oh it’s at the bottom or heading that way.  Who knows.  Altos Research takes data weekly and each little squiggle you see is a different week.  Last week 94402 was down, this week it might be up.  If you are Pre-Approved for a loan and covet this area, you can get a great buy at 2004 prices.

94403

This zip encompasses both Quartile Two and Quartile Three.  It is often the area of homes that first time buyers move-up to or move-up from.  This zip code begins just south of highway 92, runs across 101 to cover homes about a half of a mile north to those south near Hillsdale Blvd and then back across 101 to take in the rest of southern San Mateo up to 280.  These homes had a Median Price of $699,000 last week.  The Average Price was $799,759 and with that the least expensive home was $479,900 (likely a Bank Owned Property at that price) to a high of $1,750,000.  The median size finds a house around 1500 square feet sitting on a lot between 4500 and 6500 square feet and is probably a 3 bedroom, 2 bath 54 year old house.

The Market Action Index in the 94403 Zip Code is sitting at 19 and Altos Research says that’s a Cold! Buyer’s Market. It’s also the highest Market Action Index within San Mateo right now. There were 40 houses for sale last week and 4 houses were either sold, withdrawn, canceled or had expired listings.  My guess is these houses sold.  The average days on the market in this zip is now around 99 days.  The homes in this zip cover both Quartile Two and Quartile Three.

94401

Quartile Four resides almost entirely in the 94401 Zip Code.  This is the area of San Mateo that has seen the most Short Sales and REO’s (Bank Owned Properties).  Prices have declined steadily for the past two years.  The high of the market was just about the end of 2006 start of 2007 and prices were in Fantasyland for what was for sale.  These are small homes, built post-war they generally sit either around downtown or across 101 in North and South Shoreview neighborhoods.  There are pockets of newer homes that get much higher prices, and some that sit along the bay also commanding higher prices, too.  Prices are at levels we haven’t seen in years and I’d say they’re back to 2001 or 2002 levels, making them great buys for first time home owners or investors.

The Median Price last week was $499,450.  We saw an average price of $572,731 and within this zip sits the least expensive house for sale in San Mateo at $399,00 and one of the most expensive houses at $1,290,000.  The median size of a house in this zip is about 1100 square feet and generally these houses sit on 5000 square foot lots.  They were originally mostly 2 bedroom 1 baths homes but have been added on so now the median number of bedrooms sits at 3 with 2 baths and the house is about 59 years old.

Looking at the Market Action Index for 94401 Altos Research labels it at 16, a Cold! Buyer’s Market.  There were 54 houses for sale last week and only one sale.  The market in this Quartile is bouncing along the bottom and has been there for over a year.  There are many months of supply and we keep seeing more and more Short Sales and Bank Owned listings in this area making it a Hot Opportunityf or Investors.

The last Zip Code in San Mateo is 94404.  There are only a handful of single family houses in this zip code, which is shared with Foster City.  I’ll cover this zip code tomorrow when I talk about the Condo/Townhouse Market in San Mateo.

As always, should you wish more detailed information about San Mateo we’re happy to provide it.  Just drop us and email here or call us at 650-696-2820.

We have interest rates at historical rates, rate I never thought we’d see again, so if you have secure employment, money in the bank, a good FICO score and the desire to own your own home, this is a fantastic time to do it.  San Mateo is a great city with a variety of homes to choose from.  It’s a central commute whether you’re headed north towards San Francisco or South San Francisco’s biotech or south to Silicon Valley.  It’s close to SFO, has great public transit and almost perfect weather.  What’s not to like?

Last week there were 41 homes for sale in Burlingame with the median price being $1,399,000.  Since the median price is always lower than the average, the average price was $1,568,217 and to get this we had to average from the lowest listing at $695,000 to the highest listing at $4,995,000.  Quite a spread!

It is taking longer and longer to sell a home in Burlingame. It’s now averaging 119 days, or 4 months.  We are oly seeing price reductions in 27% of the homes on the market right now, and only 5% are being re-listed if their listing agreement ends.  So, I know you’re asking, what gives?  We are taking listings for 6 months or longer today, not 90 days like we used to do.  It is taking longer to sell higher ended homes because it is harder to get financing. You must have at least 20% down and stellar credit.  And, even then the banks are being capricious, so if you need to buy or need to sell, be prepared.  It will take a long while.

Median Price

The median house in Burlingame is 63 years young and is likely to be 4 bedrooms and 2 baths sitting on a lot between 4500 square feet and 6500 square feet and the house is about 2200 square feet in size.  We just don’t have huge houses here and the price you pay is really for the dirt the house is sitting on, not so much the house sitting on that dirt.  It’s California’s Gold today – land on the Peninsula.  That’s why I refer to San Mateo County as Fantasy Island, we are an island unique to the rest of the Bay Area.

Our research comes to us from Altos Research, and Altos Research looks at data weekly so I have the most up to date research out there.  They also divide the data into Quartiles, and the Median Price within each Quartile.  The First Quartile represents the most expensive homes, those over $2,000,000.  The Second Quartile represents the next most expensive homes or those around $1,500,000 or so.  The Third Quartile represents the next level, or just below the middle and those are around a $1,200,000 price range and finally the Fourth Quartile, or the entry level home for Burlingame averages around $800,000.

You get a better idea of how the Quartile works from the chart to the right, showing the median prices for each Quartile, the median size of house, lot and age.  In Burlingame the newer homes command the highest prices.

What is interesting to me is that the lowest Quartile, Four, with a median price of $799,000 shows the longest time on the market yet with the demand of Burlingame and the high quality of schools these entry level homes, that used to fly off the shelf so to speak, are languishing and I believe this is due to the difficulty in getting loans.  The banks are hording their money and regardless of what Washington DC is saying, banks are not lending easily, with some exceptions and I can lead you to them if you get in touch with me.

Market Action

Altos Research has developed a way of measuring  a real estate market by the number of homes for sale and the absorption rate, or number of homes sold or removed from the market because of an expired listing or cancellation.  They call this the Market Action Index, and Burlingame is a Strong Buyer’s Market.

Altos uses the index of 30 to divide from a Seller’s Market to a Buyer’s Market and the further away the market is from this line, the Warmer or Colder the market becomes.  Burlingame stands at 19 labeling it as a Cold! Buyer’s Market.  The market has been at this level for some time, bouncing along, up one week, down the next but never really climbing.  What we see is that there are several months of inventory for Burlingame buyers to choose from and negotiate over.  We also see that the prices in Burlingame have been pretty consistent in the past year, and this continues to be the case in all four Quartiles, too.

Burlingame is still one of the prettiest cities along El Camino Real.  Named the City of Trees, you know you’ve reached Burlingame when you drive El Camino because of the trees shading the road.  It’s perfect weather, great schools, picture perfect downtown all add to the ambiance.  If you’re interested in seeing more about Burlingame, let us know.  You can reach us at 650-696-2820 or info@wilkasgroup.com.

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Last week Hillsborough CA saw 1 house sell and 41 others sit on the market for sale.  The median price for a home was $3,700,000.  The average price was $4,72,256.  For that money you do get something… you get the median house with 4.9 bedrooms (okay let’s call it 5 bedrooms) and 4 baths and 4400 square feet.  This median house sits on anywhere from a half acre to an acre lot, with trees and possible views of the Bay and beyond.  The median age of this house is 50 years old and she’s likely been totally remodeled within the past few years.

Only 20% of the homes on the market in Hillsborough CA have seen a price reduction, unlike most of our other communities.   Why this is, I can’t really know but I can guess that the owners of these homes believe that they are above the credit crisis, want their price, and will wait it out.  What it is showing is that only one house sold last week, yes it was New Year’s week, but only one sold and it is hard to get funding for jumbo loans today so some of these sellers will have a long wait unless the banks really open up their purses, as they are supposed to do!

As you can see, the Inventory today is down from a high only few months ago.  A lot of this is seasonal.  Real estate does run in seasons and we see a diminishing of listings during late 4th quarter and through to Super Bowl Sunday.  For some reason, Super Bowl Sunday is the start of our spring market – don’t ask me why, it just is.

Our research comes from Altos Research and they divide each market into Quartiles, 1 is the top tier, 2 the top middle, 3 the lower middle, and 4 the lower tier.  By looking at the Characteristics per Quartile you can get a great picture of what’s going on in a market.  By no means is Hillsborough CA a poor community!  Look at the median price for the lower tier and you see a median price of $2,475,000.  No one is going to cry for these people but it shows you and me that our Fantasy Island, the San Francisco Peninsula, is still an island in comparison to the rest of the State of California.

Altos Research has a measurement called the Market Action Index and today I’m using their Index per Quartile.  What it says is that the highest quartile, the one with a median price of $7,150,000 is also the one least affected by the market.  Sure it is suffering but not the same way the lower quartile is, and this is because the people buying homes in this price range usually do so with cash.  They are unaffected by the bank freeze-up.

Hillsborough CA is a beautiful community with fantastic schools, great weather, exclusivity, easy commutes north to San Francisco, South San Francisco and the Bio-Tech industry, or south to Silicon Valley.  Near SFO it attracts people from other cultures as a second home.  There is no downtown and no commercial business anywhere in the town.  It sits next to Burlingame and that’s the shopping core for Hillsborough residents.  We would be pleased to help you find a home in this lovely town.  Call us at 650-696-2820 or pop us an email using the link to the right.  Our Altos Research is a helpful tool when you are looking at real estate for sale.

As a planned community, Foster City has apartments, condos, townhouses and single family homes all over the city.  This week we’re looking at the market report for what our MLS calls Class 2 homes, or Condos and Townhouses.  Last week there were 43 homes on the market ranging between a low of $455,000 and high of $1,298,000.  The median price was $715,000 and this was likely a condo that has 2 bedrooms and 2 baths.  Townhouses are generally larger and cost at or above the median price.  We saw 4 units absorbed, meaning they either sold or went off the market for some reason.

How long are these on the market?

Condos usually take longer to sell in a down market and right now the average days it takes to sell a class 2 property is 72.  This is still within what I consider to be a normal market, meaning it’s taking less than 90 days to sell.

How Many are there?

Inventory is such that there’s a good selection to look over.  Townhouses almost always sell faster than the condos because they allow someone to enter into home ownership and get the Foster City schools for much less than it would cost them to buy a detached single family house.  Currently, the least expensive single family house on the market in Foster City is listed for less than a townhouse that sold within 11 days and was a significantly larger property.

Median Prices

When looking at this chart, keep in mind that the spike in price way back in 2007 was likely for one or more of the condos at Promontory Point, a luxury development sitting at the entrance to Foster City on Hillsdale Blvd.  These are also the highest priced condos for sale today, at over $1.2 million.  Most condos and townhouses are selling in the mid-$700,000′s and prices have been up there for a while.

Market Action

The best way to know what’s going on with the market is with the Market Action Index as this is an indicator of the supply and demand in the market.  Foster City’s condos and townhouses sits at 20 in Altos Research’s chart.  The red line, at 30, is the division between a Buyer’s Market and a Seller’s Market.  We are currently in a Cool Buyer’s Market and have been there for a long while.  The dramatic drop last year was due to a change in the algorithm used by Altos for data measurement.  We are also bouncing along the bottom or the market, not totally at the bottom, but a little above it.  We’ve been there a long time and probably will be there a while.

So, what does all of this mean to you?  If you are considering buying your first home, it’s a great time to do so.  The tax credit the Uncle Sam and co

Last week Foster City had 31 houses for sale ranging in price between $868,000 and $2,275,000. These houses are obviously quite different.  We haven’t seen a single family house for sale in the $800,000′s for quite some time and this is a small house (1280 square feet) on a small lot, but, this is a house in Foster City where the schools are tops and the commute is easy.  The most expensive homes in Foster City sit on the water with lovely views, boat docks.  Last week we saw 8 houses absorbed, meaning either sold or off the market for other reasons.

Days on the Market

The average Days on the Market (DOM) is 53 and that’s higher than it has been lately but if you look at the chart above you can see days on market have been everywhere this year.  Altos Research indicated that we’re seeing a rising trend in DOM, price per square foot and inventory over the quarter year.

Median Prices

Prices generally have remained on the high end although not as high as in 2007, the prices are still up there.  What makes Foster City so appealing and desired by families is that it’s a planned community with parks everywhere, a wonderful path that runs around the bayside of the city, great schools, moderate weather and an easy commute north towards San Francisco, south towards the Silicon Valley or across the San Mateo/Hayward Bridge to the east bay.

How’s the Inventory?

This summer is one of the best we’ve seen in several years for a good selection of homes for sale.  If you are interested in buying here, this is a great time to make an offer.

What does the Market Action Index Mean?

The pricing of residential houses is a function of supply and demand, and the market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Market zone for a long period, prices are likely in for a downward correction.  The red line, sitting at the number 30, delineates a buyer’s market from a seller’s market.  We’ve been in a Cool! Buyer’s Market for about a year and hit bottom the first quarter of 2008 and we’ve been bouncing a little above that bottom since.  Currently Foster City is sitting at the number 20 which is pretty much where most of our communities sit today.  Not a truly depressed market and not a hot market.  It’s really more of a normal market allowing for time for a buyer to look at and consider the homes on the market rather than how it was in the past hot market with multiple offers and no time to really be sure you were making the right choice.

If you would like to receive a full report on Foster City just sign up for it to the right.  Have questions?  Let me know and I am here to answer them.

94401, 94402, 94403

Like the single family homes in San Mateo, the price spread is wide.  First we’re going to look at what’s happening with the condos and townhouses sitting in zips 94401, 94402, and 94403.  Then we’ll talk about 94404 the area across 101 and next to Foster City.  Last week there were 104 properties for sale ranging from a low price of $199,000 (yes, that’s the price) to a high price of $3,990,000.  Obviously there’s a huge difference between the two!  The median sized place has 2 bedrooms and 2 baths, is around 1100 square feet and about 28 years old.

Median Prices

The median price was $549,000 for this little 2  bedroom home.  As you can clearly see we’re past the bottom of the market in price.  If you wanted to time it, you needed to buy during Q1 of this year.  Too bad for the buyer and a little better for the seller.

How Long Has it Been on The Market?

One of the key questions I’m asked by buyers is “how long has this been on the market?” It’s a great question because it helps to figure out price and whether to offer at asking or below.  The Days on the Market or DOM has been rising lately.  Why?  Who knows.  it could be fear on the part of buyers with all of the gloom and doom we hear from our news sources about the real estate market.  They’re wrong about it.  If you are seriously thinking about buying your first home, and it’s to be a condo, don’t wait.  Congress has given you a gift of a tax credit for first time home buyers in 2008.

Lots to Choose From!

If you’re thinking about downsizing from a large home into one of the many luxury condos skirting downtown, this is a great time to do it.  When we talk about the number of homes for sale we refer to them as “inventory” and right now it’s pretty good, although lower than the peak a year ago, there’s much to choose from.

Buyer’s Market or Seller’s Market?

It is a strong Buyer’s Market for condos or townhouses in San Mateo.  right now the Market Action Index sits at 20.  that’s better than it has been for most of this year, and it is rising, which is great news for sellers.  The orange line sits at 30, the divider between Buyers and Sellers.  We hit bottom around March of this year and have moved up wards since.

94404

What is it about this zip code that people like?  The proximity to the bay perhaps?  This part of San Mateo is mostly condos sitting in Mariner’s Isle, Edgewater Isle and Harbortown.  Although they are built townhouse style, they are condos none the less.  There are townhouses that do sit right along the bay with docks below and wonderful views that sell for significantly more that what we are seeing on the market today.  The least expensive condo was listed last week at $499,000 and the most expensive was $665,000.  The median size is just under 2 bedrooms and 2 baths at 1100 square feet in size.  These are generally about 25 years old.

Median Price

The median price of an area changes with the number of homes for sale and prices on them at any one time.  As you can see it’s been all over the place but right now it is $612,495.

How Long Has it Been For Sale?

Last week the average number of days on the market that a property sat was at 72, and moving up. As you can clearly see this is substantially less than it was earlier this year.  We are really in a normal real estate market today and this allows you, as a buyer, the opportunity to really look around and consider your future home.

How Many Are There For Sale?

I love charts that look this this one!  Look at the dramatic drop in the inventory of condos for sale in the 94404 zip!  Wow, that’s impressive because there are only 6 to look at and choose from if this is the area you want to be in.  This part of San Mateo is great to live in.  It’s easy to get to 101 or 92 and the waterfront is a lovely place to run or walk.  The complexes there all have major water features within their interior designs,too.

Buyers?  Sellers?

All real estate is local and within San Mateo, this area is sitting at the number 22 in this week’s Market Action Index that Altos Research produces for us weekly.  This places the area as a Cool Buyer’s Market and as you can see it has been moving up wards for some time now.

Overall, this is a great time to buy a condo or townhouse in San Mateo.  The market is getting stronger and although not at bottom, it’s still offering great buys.  There is money out there to lend and the First Time Home Buyer’s Tax Credit to use if that fits your description.  What are you waiting for?

If you would like to have more of this kind of data, just sign up on the form to the right.  Have questions about what is here?  Get in touch with me and I’m here to answer them for you.

San Mateo is the largest city in the mid-Peninsula with about 90,000 residents.  Prices for San Mateo spread far and wide.  Last week the range went from a low of $300,000 to a high of $3,395,000 – quite a spread and significantly different kinds of houses.  Today I am going to write about the entire city and then talk about the individual zip codes tomorrow.  With such a dramatic spread of prices the median priced house drops to $749,000 and it’s likely to be a 3 bedroom 2 bath rancher with about 1400 square feet sitting on a lot of around 6000 square feet.   It was probably built shortly after WWII.

Average Days on Market

Overall, the average number of days on the market has risen to 90.  It’s certainly lower than it has been this year but higher than you might expect during the summer buying months.  Keep in mind the average days on the market DOM, is for the entire city including the areas deeply affected by the sub-prime lending mess.  The areas west of El Camino where the high priced homes sit, generally is moving a little faster.

Inventory of Houses

Along with the increased number of DOM, we see an increase in the number of houses for sale.  We have not seen this large a selection of houses for years so if you are a pre-approved buyer, the time to buy is now since you can choose from so many homes.  If you are a first-time buyer, take advantage of the tax credit that Congress has given to you for this year only.  Up to $7500 in tax credits for first-time buyers is hard to resist and this, along with all of the traditional write-offs for homeownership will be a nice gift come tax time in 2009.

Median Prices for San Mateo Houses

You can easily see when the top of the market was in San Mateo!  It looks like the peak was around the first or second week of January in 2007 and things have gone downhill since.  That is, until now, with a jump up this summer that appears to be sustaining.  Time to move on that purchase if you’re on the fence.

Market Action Index

Our research company, Altos Research uses an algorithm to divide a Buyer’s Market from a Seller’s Market.  The red line at 30 is that line.  We hit bottom in first quarter of this year and have been bouncing along, a little upward, but bouncing none the less in at a Cold! Buyer’s Market with the number 19.  This is city-wide, all zip codes.  As I show you tomorrow, it’s a little different in each zip code within the city.

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The median sized home is 3 bedrooms and 2 baths sitting on lot between 6500 and 8000 square feet.  This is a bigger lot than most of our local cities, too.  The typical house has about 1800 square feet but a lot of that square footage might have been added on from the original house.

Altos Research says the Market Action for San Carlos sits at 22, making it a Cool Buyer’s Market.  The market has been at bottom for some time kind of bouncing along moving up a little and down a little week by week.  Yet prices haven’t dropped but are moving upward once again.  Why you ask?  Too few for sale and those on the market are likely bigger and better, that’s why.  Altos Research did an algorithm change back in October of 2007 and that caused a shift in the Market Action Index, which is why you see the big drop there. Altos REsearch says a Buyer’s Market shifts into a Seller’s Market at the number 30.  San Carlos isn’t too deeply into a Buyer’s Market.

The chart for Median Price hit bottom in January so you’re too late if you are trying to time the bottom.  Prices rise typically this time of the year and this chart is jumping all over the place but not much has changed over the past two weeks.  The orange line is the 90 day trend and the black is for 7 days.

The final chart here shows the Inventory of homes currently for sale and they have climbed significantly over the past two years but really, there are onloy 65 houses for sale in the entire city.  That’s why prices stay up, folks.  Until we see more houses come on the market around here, prices will command high prices.

San Carlos has great weather, great schools, one of my favorite downtowns with free parking, and is an easy commute to the Silicon Valley or San Francisco.  What more could you want?  If you want more data on San Carlos just ask.  We’ll get it to you.

While San Mateo condos and townhouses are scattered around all of the zip codes today we’re focusing on the entire city and the 94404 zip where Mariner’s Isle, Edgewater Isle and Harbortown reside.  The most expensive condos in San Mateo are on West 3rd Avenue in Baywood where there are several condominiums that are relatively new, offering spacious, luxury condos that are a short walk to the Library and downtown San Mateo.   The least expensive condo in San Mateo was listed at  $199,000, an unheard of price only a year or so ago.  The most expensive condo in San Mateo was listed at $2,250,000 and it’s on West 3rd Avenue, where else?

There were 112 units for sale last week and 21 sales.  A unit, in real estate parlance means an apartment or townhouse.  Most conds are 2 bedrooms and 2 baths and most also were built as condos, not converted from being apartments, so they have better sound proofing between apartments and in the ceiling and floor.

Townhouses sell for more money as they sit on their own land.  They are bigger, with garages attached and sometimes have small yards.  There are fewer of them within the city, and they sit in pockets both west of El Camino, near downtown and east of 101.

The market hit bottom right the the end of 2007 and beginning of this year and has moved up a bit, occasionally with some peaks and valleys due to the sale price of one or more high-end units skewing things.  But, median prices for the condo market right now is in the mid-$500,000′s.

Altos Research, the research company we buy this data from tells me the Condo Market in San Mateo is in the Cold! Buyer’s range at 19, but it’s moving upwards.  There are some great buys out there and people are acting on them.  This hasn’t been a short sale market the way the entry level homes have been.  People buy condos or townhouses because of the living conveniences they offer and often for more of a downtown location.

94404 – Mariner’s Isle, Edgewater Isle and Harbortown

The 94404 zip is shared with Foster City but there is a huge difference in these two markets.  This zip in San Mateo sits east of 101 and along some bay waters.  Harbortown is a large complex of conds, some looking and feeling like townhouses, but condos, not the less, and some have great waterfront views.  They are the most expensive of the complexes in this zip code.  Edgewater Isle sits across from Harbortown, also townhouse style conds, with pretty grounds, and some with water views. Finally, you find Mariner’s Isle.  There are some attached houses here, and some condos, too.  Many of them sit right at the water’s edge, offering boating from a private dock.  This area features a lot of waterfront action and those properties fronting the water get higher dollars at sale.

A Cold! Buyer’s market, it sits at 18, well below the divide of 30 for a seller’s market.  The most expensive condo on the market is for $848,000 and the least expensive one is $395,000.  The condos are smaller, but the townhouse-style units are generally at least 2 bedrooms and 2 baths and many are 3 bedrooms and 2.5 baths.

This area really hit bottom in March and has jumped up since then but not by much.  There were 12 conds for sale last week and 4 sales.  Average days on the market to sell have dropped a bit, too.

Altos Research measures a Buyer’s Market and a Seller’s Market with this index and 30 is the delineator.  The San Mateo condos sitting in the 94404 zip have been in a Buyer’s Market for a year.  Things are warming up a little bit, but not by much, making this a great place to buy an investment condo or a place to call home.