Last week Foster City had 50 Single Family homes for sale and saw 3 sales. The Median Price was $1,054,500 and this median house has 4 bedrooms, 2 baths is about 37 years old and sits on a 6000 foot lot. This median house is almost 2200 square feet. We saw a house listed for $790,550 last week, and one listed for $2,290,000. That spread meant a huge difference in size and finishings. We’re seeing the average number of days it’s taking to sell is trending up to 137 days. Almost half of all listings have seen a price decrease. What does all of this mean to you if you’re a buyer or seller? It depends.
Quartiles tell the market’s story through size and price comparisons. Quartile One has the largest homes, those generally on the water, and they always cost the most. Quartile Two, Three and Four move downward in size, lot size and ammenities. The most expensive homes have been taking the longest to sell because we have had more issues in lending. Today, loans are available if you have the leverage to move up or cash in the bank. Quartile Three, with the average price at $1 million is taking a shorter time to sell. This is interesting to me since that is a move-up price point and perhaps people are now selling their starter homes and moving up. Don’t know, and can’t determine this through any of my research, but it’s a hunch.
Prices have come down recently from the high at the end of the year. Okay, I know you’re thinking why would we see this peak at year end/new year? We don’t generally have a large number of properties listed at that time, so it really only takes one or two the skew prices. We are way over due in seeing prices come down and they still haven’t in many other cities around here. The market dictates price the seller never does which is why we see so many price reductions today. The median price is down from what we saw only a month or so ago. That’s great news if you’re a buyer.
One of the other main indicators of a real estate market besides average price is inventory and Foster City’s single family inventory has climbed dramatically this year. What does this mean and why is it happening? Theories are out there and one of those that seems pretty realistic to me is that these sellers may not want to sell but when they went to refinance their loans, found out they didn’t have the equity to do it any more, and are either forced to keep the loans they have or sell. There is pipeline of homes ready to come on to the market for short sale or foreclosure and perhaps some of these homes will end up there. I don’t know for sure. It’s just a hunch. It’s a Buyer’s Market so if you are in a position to buy a home, what’s stopping you? The bottom for interest is gone. You missed it. We are done with those 4+% loans. If you keep waiting the interest rates could end up at 6% – which incidentally isn’t high, but you and many others will perceive it so. Foster City has great schools, great weather, easy commutes to the City of Valley. Call us or drop us an email through the Contact Us button on the left.
The final indicator of how the market is doing is the Market Action Index our research company, Altos Research uses. Foster City is in the Cold Buyer’s Market and has been there for almost 2 years! It’s bouncing along and looks like it may stay there a little longer. Wouldn’t be be sad if you were to keep waiting for …. and found out you’d landed in the Seller’s Market category? Don’t wait. Let us help you find your new home now. Just in case you’re new here, the Market Action Index gives a 90-Day Market Action Index telling us there is several months of housing inventory to pick from.