San Mateo County - Real Estate Market Report JANUARY 2024
San Mateo County Monthly Market Report
Median House Sales Prices:
- The median house sales price in Q4 2023 shows a slight increase of about 1% from Q4 2022.
- Seasonal trends indicate that prices often peak in Q2; however, the data for Q4 2023 shows a decrease from the Q2 2022 peak.
- There is a note indicating "Pandemic lifts" during the 2020 and 2021 years, suggesting unusual market conditions during this period.
Annual Sales Volume:
- The number of home sales in 2023 was down by about 20.5% from 2022.
- This indicates a significant reduction in transactions, which could be a result of higher interest rates, affordability issues, or other economic factors.
Mortgage Interest Rates:
- Interest rates reached a peak in October 2023 at 7.79% and declined to 6.61% by the end of December 2023.
- The downward trend in interest rates might encourage potential buyers who were previously deterred by the higher rates.
Active and Coming-Soon Listings (January 1, 2024):
- The number of active and coming-soon listings on January 1, 2024, is 431, which is low compared to most months in the previous two years.
- The note suggests that this number should increase as the market wakes up after the new year.
Insights and Recommendations:
- The slight increase in median house prices year over year, combined with the recent decrease in interest rates, could provide a more favorable buying condition compared to the peak of 2022.
- With the annual sales volume decreasing significantly, buyers may find less competition, but also a lower inventory of homes to choose from.
- It's important for buyers to monitor the market closely as the new listings begin to increase after the start of the year, which may provide more options and potentially better negotiating power.
- Sellers should be aware of the recent decrease in sales volume, indicating that pricing strategies may need to be adjusted to attract buyers in a slower market.
- Considering the peak in median house prices typically occurs in Q2, sellers might aim to list their properties in advance of this period to capitalize on potentially higher prices.
- Given the reduced competition due to lower inventory levels, sellers might still find an advantage, especially if the inventory remains low or if interest rates continue to decrease, encouraging buyers to enter the market.
Overall, the San Mateo County real estate market in the latest quarter shows signs of a potential shift towards a more balanced market, with opportunities for both buyers and sellers, depending on their respective strategies and market responses to the changing conditions. Buyers should take advantage of the lower interest rates and less competition, while sellers need to be mindful of pricing and timing to stand out in a market with fewer transactions.
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