Hillsborough CA Market Update for May 28, 2008

Altos Research

Hillsborough Market Report

Last week, Hillsborough had 47 houses on the market with a median price of $3,880,000. The average price of all of them was  $4,763,631.  One would think that these houses would sit on the market but they are selling.  Yes, not the way they did at the peak of the market in 2006, but within an average of 87 days, which isn’t bad in this market.

Altos Research says this market is a Cool Buyer’s Market with an index of 21 and it’s moving upwards, too. Pent up demand, anyone?  Hillsborough is one of the most expensive and exclusive communities in California.  It’s close to San Francisco, the Silicon Valley and SFO and provides secluded properties for senior executives.

Altos Research

Hillsborough Market Action Index

The Hillsborough market is currently in the Buyer’s Market zone, which is below the red line of 30.  Standing at 21, it’s a Cool Buyer’s Market and is showing signs of warming up, with sales demand recently increasing faster than inventory.

The Market Action Index illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory.

A MAI value greater than 30 typically indicates a Seller’s Market, or a hot market, because demand is high enough to quickly gobble up available supply.  This hot market typically causes prices to rise.

Altos Research

Median Price Index

So, what’s happening with prices?  They’re going up, yet we’re in a Cool Buyer’s Market.  So, what gives?  Well, there are 47 homes for sale in Hillsborough and the least priced home is listed at $1,695,000 and the most expensive home listed at $12,995,000.

There appears to be pent up demand and buyer’s are out there wheeling and dealing.  The average home for sale in Hillsborough today is about 5100 square feet sitting on a lot between a half acre and a full acre.  It’s likely to have 5 bedrooms and 4 baths and be around 35 years old and totally updated.

Schools in Hillsborough are the best in San Mateo County, driving a lot of the demand for the town.  Would you like more information like this, or the full report?  Just ask.  We subscribe to Altos Research Reports for our area and we’ll be happy to send one to you.

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