First-Time Home Buyers are the Growing Share of the San Mateo County Real Estate Market
Daly City, East Palo Alto, San Bruno and South San Francisco actually have more houses under contract than they do available for sale. Stats prove what we’re seeing: Inventory is at an unbelievable low; it’s a sellers’ market and multiple offers are common.
Leslie Says
Leslie Appleton-Young, the economist for the California Association of Realtors, sees this trend continuing. She advises that the first-time buyer home prices will continue to strengthen over the next two years.
Housing Absorption Rates Year to Date
| Jan | Feb | March | April | May | June | July | Aug | Sept | Oct | |
| Atherton | 25 | 18 | 8.6 | 10.8 | 4.6 | 2.8 | 3.4 | 3.7 | 2.3 | 4.6 |
| Belmont | 3 | 2 | 2.3 | 2 | 1.5 | 1.7 | 1.4 | 1 | 2.6 | 1 |
| Brisbane | 2 | 6 | 5 | 3 | 5 | 3 | 4.3 | 2.6 | 1.7 | 2 |
| Burlingame | 3.6 | 4 | 3 | 1.6 | 1.9 | 1.6 | 2 | 2.2 | 2.4 | 2 |
| Colma | 6 | 1 | 2.5 | 1 | 1 | 1 | 1 | 3 | 1 | 0 |
| Daly City | 1.3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | * |
| East Palo Alto | 1.3 | 1.6 | 1.4 | 2.4 | 1 | 1 | 1 | 1 | 1 | * |
| El Granada | 5 | 31 | 11 | 9 | 6 | 3.6 | 2.8 | 2.7 | 5.4 | 3 |
| Foster City | 6.5 | 10.7 | 10 | 2.8 | 2 | 1.5 | 1.4 | 2 | 2 | 2 |
| Half Moon Bay | 7.6 | 11 | 7.5 | 16 | 6 | 7.9 | 5.5 | 3.6 | 3.8 | 3 |
| Hillsborough | 7.7 | 12.8 | 5.9 | 5.9 | 4.3 | 4.7 | 5.9 | 2.8 | 4.4 | 3 |
| La Honda | 8 | 5 | 3.7 | 6 | 4.7 | 6 | 5.5 | 4 | 3.3 | 2 |
| Loma Mar | 1 | 1 | 1 | 0 | 1 | 1 | 0 | 1 | 1 | 1 |
| Menlo Park | 3.5 | 3.4 | 4 | 1.9 | 1.7 | 1.8 | 2.9 | 2.2 | 1.9 | 2 |
| Millbrae | 5.9 | 9.5 | 3 | 1.6 | 1.2 | 2.3 | 2 | 2.2 | 1.7 | 2 |
| Montara | 18 | 17 | 16 | 4.5 | 3.6 | 3.4 | 4.3 | 3.5 | 3.3 | 4 |
| Moss Beach | 10 | 16 | 7 | 5.5 | 12 | 4.5 | 5 | 3.7 | 6 | 13 |
| Pacifica | 2.8 | 2.8 | 1.9 | 1.3 | 1 | 1 | 1 | 1 | 1 | 1 |
| Pescadero | 8 | 4 | 5 | 2 | 3 | 3 | 2 | 2.5 | 9 | 2 |
| Portola Valley | 11 | 3.8 | 3.4 | 2.8 | 5.5 | 3.4 | 5.5 | 3.1 | 3 | 2 |
| Redwood City | 3.3 | 2.5 | 2.4 | 2.3 | 1.8 | 1.5 | 1.5 | 1.2 | 1.3 | 1 |
| Redwood Shores | 4.7 | 9 | 6 | 2 | 3 | 2.3 | 3.3 | 3.2 | 1.9 | 2 |
| San Bruno | 1.6 | 1.4 | 1.5 | 1 | 1 | 1 | 1 | 1 | 1 | * |
| San Carlos | 3.8 | 2.3 | 2.8 | 2 | 2.2 | 1.6 | 1.9 | 1.8 | 1.9 | 1.5 |
| San Gregorio | 2 | 2 | 1 | 2 | 3 | 1 | 1 | 2 | 3 | 3 |
| San Mateo | 2.9 | 3 | 2 | 2 | 1.6 | 1.3 | 1.3 | 1 | 1 | 1 |
| So San Francisco | 2.5 | 1.7 | 1.4 | 1 | 1 | 1 | 1 | 1 | 1 | * |
| Woodside | 16 | 6.8 | 7.3 | 7 | 7.6 | 6.8 | 9.3 | 13 | 7.7 | 5 |
Real Estate Absorption Rates
The absorption rate is a quick way to see if the number of homes for sale in San Mateo County is going up or down. It’s just one of the statistics used to evaluate pricing.
What you’re looking at is how many months’ inventory there is on the market. The assumption is that it will take X number of months for all of the houses currently on the market to sell. More inventory = longer to sell.
You can also see if the area is a buyer or a sellers’ market. The National Association of Realtors defines a balanced market as one is which there is 6 months of inventory. More than 6 months, it’s a buyers’ market; less is a sellers’ market.
Thanks for reading the San Mateo Real Estate Blog.
I love questions and comments. So please leave one!
Vicki Moore, Realtor
Alain Pinel Realtors, specializing in San Mateo, CA Real Estate.
Need real estate help?
Contact me at 650.888.9268 or Vicki[@]CallVicki.com.
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