Peninsula Real Estate Market Update
The Peninsula home market is getting squeezed. Year to date home sales in San Mateo County are down 4.7% from a year ago. The story is similar in Santa Clara County. This is not due to weakness in demand but rather tightness in supply. There are still plenty of new potential homebuyers out there in the marketplace, but fewer homeowners are selling. There is less than 2 months’ supply of homes for sale, only a third of what is typical.
This has caused home prices to increase dramatically in the past few years. However, Peninsula home prices appear to be reaching a plateau. The San Mateo County median price in June 2016 was $1.3 million, virtually unchanged since a year prior. While the supply of homes is tight, it has risen 26% since last year. Homes are taking longer to sell. We are seeing fewer multiple offers and overbids.
This recent change in the market suggests different strategies for both buyers and sellers. If you are thinking about moving this year, it will be vital to work closely with an experienced agent to navigate this challenging market. We will be happy to help you.
Robin & Les Wrigley, Alain Pinel Realtors