The market, she is a-changing. Last week Burlingame had 85 houses for sale and the average time they have been on the market is about 70 days. The inventory is increasing and so is the time it is taking to sell a property. There could be several reasons for this: One, being the difficulty in buyer’s getting loans; Two, the problems the real estate industry across the county is having with appraisals coming in accurately; and Three, these houses are move-up properties and the people wanting to move up to Burlingame can’t get their houses sold either. So much for the housing stimulus in San Mateo County.
The Median priced house last week was $1,388,000. The Average priced house was $1,564,274. The most expensive house for sale last week in Burlingame was listed at $3,395,000 and the least expensive house was listed at $514,900, the one and only Bank Owned property in Burlingame. By the way, there are 12 Short Sales in Burlingame.
We are seeing fewer houses being re-listed and my guess is because listing are now being taken for up to 1 year rather than 90 days like it used to be done. Prices are being reduced in 40% of all listings. What does this tell you? Prices are still too high so if a house doesn’t sell it is because of the price. Many people are trying to sell before their loans reset to higher interest rates — these are the ARM and alt-A ARMS that were taken out by many buyers during the real estate frenzy 3-7 years ago. They were the 3/1, 5/1 and 7/1 hybrid loans so many people took advantage of to buy a house. Some of these loans will be fine and will reset into prevailing rates, many will not, and we in the real estate community, expect to see a tsunami coming forth in our area of San Mateo County. Nationwide over half a million loans (523,000) are due to reset in 2009 alone!
The Market Segments
Our wonderful research company, Altos Research, divides the market into quartiles to show how each segment of the market is different from the other in price and property. The top Quartile is doing the best, but the houses sold last week had huge price reductions prior to selling. A house sells if the price is right. Generally the bottom Quartile moves faster in Burlingame because it has been the entry to this great town but not in this case. It’s languishing and I must guess the reason is due to the difficulty in getting loans. It’s only a guess…..
Prices in Burlingame have dropped over the past couple of years but clearly they’re still high and trending that way, yet we’re seeing 40% of all listings getting price reductions so some how there is a disconnect with the sellers in Burlingame. Price matter and it is still mostly too high or these houses would be selling.
The Market Action Index clearly shows that Burlingame hit bottom around March of this year bounced up a bit, and has stayed around the level since. Burlingame is a Strong Buyer’s Market and sits at 16, well below the line that moves it into Seller’s Market, at 30. There are seller’s markets today, believe it or not, but not on the Peninsula. We are still short housing for the number of people living here but clearly the prices in Burlingame are not reflecting this.
Burlingame, California, 94010, is still one of the sought after communities to live in on the San Francisco Peninsula because of the fine schools and beauty of the community. If you want to live in Burlingame you will have to pay a lot of money and if you are lucky enough to either have a loan approved, or money in the bank in order to pay full cash, the selection of houses is very plentiful.
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