Hillsborough CA Market Report 01.08.09

In our corner of the world, mid-San Mateo County, the most exclusive and expensive community is Hillsborough, CA.  If you wonder why I put the CA next to it, when I never do this for our other communities it’s because there are several other cities named Hillsborough that are spelled the same way, and I want to keep our data in the right place for you and for Google!

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.

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