When we begin to slice and dice data about the City of San Mateo’s real estate we do it by zip code rather than the real estate areas. I go deeper for some neighborhoods but today is the 94401 Zip Code’s turn. This area sits around downtown and then runs across 101 east to Shoreview with Coyote Point at the north and south to about Kehoe. These are mostly small, entry level single family homes. Last week the 94401 area had 39 houses for sale and 2 sales. The least expensive house, really a tear down, is listed at $299,000 and yes, it is a Short Sale. The most expensive house was listed at $1,550,000 and is a historical mansion near downtown. The Median Priced house was $549,900 and the Average Priced was $629,027. It’s now taking a little less than it has been recently for a house to sell in this zip, 138 days. What do you get for this money? It’s a 3 bedroom 1 bath house built about 60 years ago on a 5000 foot lot. It’s often in need of repair, updating or other issues as this was ground zero for Short Sales and Bank Owned real estate for San Mateo all last year and still has the most for the city, 9 short sales and 5 Bank Owned.
All research that I get from Altos Research provides Quartile dicing and even this zip, 94401, is divided into Quartiles. The Top Quartile, 1, has the most expensive houses and these are a mixed bag of houses. Besides the 102 year old mansion, are two newly built houses on a shared lot, and a couple of older houses that have been improved dramatically for their neighborhoods and nothing sold in this Quartile last week. Quartile 2 and Quartile 3 have houses about the same size, bedrooms, bathrooms and lot sizes but location affects price and saw only 1 sale in Quartile 2. The final Quartile, 4, has the smallest and oldest houses in the 94401 zip and they had one sale last week.
Last year was the peak year for sales in 94401 and now the inventory has dropped to about 40 houses each week, a few more or less but the inventory has been declining all year. That’s a good sign and means the neighborhoods are going to stabilize.
Along with the decline in inventory we’re seeing a rise in price due to the lack of bank owned sales here and hopefully, the market will remain improved. If you were one of those people out there trying to time the market for bottom, it’s too bad because you can clearly see that happened around the turn of the year, when it is always the time of the year we see the lowest prices.
Now here’s the good news, 94401 is now a Cool Buyer’s market and that’s the first of the San Mateo zip codes to move up to that in almost 2 years. Whoo Hoo!! Altos Research tells me this zip code is now at sitting at 20 in the Market Action Index. The red line, sitting squarely at 30, is the delineator between a Buyer’s or a Seller’s market. Keep watching this zip code because it might be the weathervane indicating how the market is doing in San Mateo overall.
Tomorrow come back for 94402.