Yesterday I wrote about the Market Update for the entire city of San Mateo. Today I begin to talk about whats going in within each of the 4 zip codes the city shares.
This zip runs across the north part of San Mateo, including downtown, crosses 101 to the area boardering the bay, North Shoreview. Its a real cross section of the citizens of the city. There were 53 houses for sale in 94401 last week. Nothing was sold.
Altos Research calls this zip code a Cold! Buyers Market. Inventory is trending up but days-on-the-market are trending down to just over 106 days. This market has been flat.
Depressed Lending Market
This chart answers the question of ˜How is the Market Doing?. Its been bouncing around that Red Line, the one indicating a Buyers Market, for over 2 years now. The drop that took place in October of 2007 was partially due to a change in the mechanics Altos Research was using for this measurement.
94401, which is mostly moderately priced entry level homes has sat in the Cold! Buyers Market for some time now. This is also the area of San Mateo that is considered a Depressed Market by lenders. What does that mean to you should you want to buy there? Youll need more cash, more patience, and be willing to answer all questions your lender asks. In exchange? Youll get a good bargin and a single family house at condo prices.
Dramatic Price Declines
At the peak of the real estate market back in January 2007, prices spiked but they have since fallen dramatically. Some of this is due to the high number of Short Sales that have taken place there. Some due to the Bank Owned properties for sale now, and some are in response to both of these issues by sellers who need or want to sell their homes.
The lenders are requiring more down payment for purchases in 94401. They are requiring longer underwriting times and sometimes additional fees.
But, 94401 is a great place to buy a first time house. For the same price one might have paid for a condo 18 months ago, you can buy a single family house sitting on a 5000 foot lot. The average sized home is about 1100 square feet and its likely to be a 3 bedroom 1 bath house needing some updating, but still its a House!
Want more of this? Just ask me.