The 94402 zip code has the most expensive houses in San Mateo. It also has many that are in the least expensive category, too, but not as many as the former. The most expensive house for sale in San Mateo last week, one sitting in San Mateo Park, was listed for $2,795,000. In fact the the 5 most expensive houses, all above $2 million are in San Mateo Park a beautiful area filled with huge trees, round-abouts, no sidewalks and large, large lots. The Median Price last week for 94402 was $1,180,000 and this is a 63 year old house around 2000 square feet on at 7500 foot lot, likely 3 bedrooms and 2 baths and totally redone. The Average Price for this area is $1,251,470 and the least expensive house in 94402 was $418,800, and it’s gone this week. There were 7 houses sold, but the average time on the market is going up to 126 days, over 4 months.
Quartile 1 has the San Mateo Park houses some that were built before 1900 and are historical in nature. There were 2 houses sold here. This area sees houses selling the fastest for 94402. Quartile 2 features Baywood, Aragon, Baywood Knolls and houses that have what we call, curb appeal and character. There was 1 listing in this Quartile and 2 sales. Quartile 3 covers the Highlands and some of Hayward Park with a spread in architecture from Eichler to 1930’s bungalow. There were 2 sales in this Quartile and no new listings. The houses are generally smaller in square footage than the top to Quartiles but some of the Highland lots are very large. Quartile 4 encompasses most of Sunnybrae and some of San Mateo Park for entry level house, many redone and very cute. We saw 1 listing here and 1 sale last week.
Like other parts of San Mateo, inventory is at it’s high for the year and especially for the past 4 years. These houses are often very expensive, two income properties and there could be some Alt-A loans coming due that can’t be refinanced due to financial issues for the owners. This is the zip code we anticipate seeing short sales and possible foreclosures by year’s end. Keep watching this because you might be able to buy a fantastic house in a fantastic area for 2006 prices. There are only 4 short sales and 2 bank owned listings right now, and these are in the lower Quartiles.
When inventory goes up, we usually see prices go down but not so in the 94402 zip code. Prices have remained very steady over the past year. They didn’t dramatically drop during the holidays either. This is due to the upper Quartiles and the neighborhoods these houses are in. People are willing to pay for them.
My final chart is the Market Action Index and it is moving up after hitting bottom around March of this year. Altos Research says 94402 is at 17, still a Cold Buyer’s Market, but heading in the right direction after a long time below 20. Hopefully this means the market is rebounding and that can only happen if the lenders are willing to lend jumbo-jumbo loans to buyers desiring this zip code. Yes, banks are lending but it’s hard to get those loans unless you have stellar credit and a high FICO score. 94402 is “the” zip code to live in, with many parts of it allowing homeowners to walk to downtown Burlingame (San Mateo Park) or downtown San Mateo (Baywood and Aragon). Good schools, easy access to freeways and public transit makes this a great place to live. If you’d like to follow the 94402 zip code weekly let me know.