2015 was another excellent year for real estate in San Mateo County with home prices increasing by $206,000 to a new record, thus outperforming the coast. On the Coastside, prices only rose by $93,000. The gap keeps widening and now stands at $478,000, making the coast a bargain by comparison!
County home prices peaked in 2007, dropped, then set new records from 2013 to 2015. Prices increased by an impressive 15 percent last year and are way above the peak in 2007. (The coast’s prices rose by 9 percent and are also in record territory.)
Now the average home price stands near $1.6 million. On the coast it is $1.12 million. Countywide, that is compared to $1.39 million in 2014, $1.22 million in 2013, $909,000 in 2011, $878,000 in 2009, $1.21 million in 2007, and $842,000 in 2000. Since 2000, home prices for the county are up 90 percent. They are up on the Coastside by 57 percent. Meanwhile, the Dow Jones is up 66 percent.
Sales volume actually has been declining for the past three years for the county due to the limited inventory. The Coastside’s volume declined by 6 percent in 2015. Volume peaked in 2004 with 6,506 sales, bottomed out in 2008 to 3,876 units, and has improved up until 2012 with 5,162 sales. It has been declining to 4,306 in 2015.
From the highs, volume has dropped by 34 percent for the county and 31 percent for the Coastside. Inventory is very tight. There is now just 0.7 months supply. (There is 2.1 months supply on the coast.)
Because of all the factors mentioned above, average selling time decreased to 24 days. (The Coastside stands at 49 days.) Countywide that compares to 49 days in 2012, 68 days in 2011, 71 days in 2009, and just 28 days in 2005.
Of the 28 towns in the county that make up our real estate area, 18 have an average home price topping $1 million — up from 10 in 2012 and 17 in 2007. Atherton is the most expensive town with an average price of $7.2 million. There are five towns where prices exceed $2 million. They are Hillsborough, Portola Valley, Woodside, Menlo Park and Burlingame. The other towns that make up this million-dollar club in descending order are: Redwood Shores, San Carlos, Foster City, Belmont, Millbrae, San Mateo, Redwood City, Half Moon Bay, Moss Beach, El Granada, Montara and Pescadero.
Where you also see the change is in percentage of sale price to list price. Back in 2005, that number was 100 percent. It was 97 percent in 2009, 100 percent in 2012, 103 percent in 2013, 106 percent in 2014, and today it’s 108 percent.
The accompanying chart shows homes prices for both the county and the Coastside since 2000.