Hillsborough is a gorgeous town in the San Francisco Bay Area that is near Burlingame City. It is one of the most prosperous neighborhoods in the country which has a landscape distinctly occupied by large homes.
The market trends in Hillsborough do not change in quick succession every month because it is a relatively small market with 100-150 yearly sales. The data gathered for October 2011 show relatively the same seller's market condition that has been observed recently in Hillsborough. The steady state of home sales in the area continues while inventory and listings are down.
Home sales have decreased during each of the last five months and this may be significantly attributed to the change in seasons than change in the market. Normally, sales are higher in summer and early fall than late fall and winter. Home sales through the first ten months of 2011 have increased at 126 homes, which is a 19% increase from the same duration in 2010 and 62% from the same duration in 2009.
Fewer new listings - down by 13% - have come onto the market at the same period that sales have been increasing. Inventory declined distinctly while sales are high and listings are low. There were 55 homes for sale in Hillsborough at the end of October 2011 while at the same period in 2010, there were 85 homes on the market. Having thirty fewer homes is indicative of less competition among sellers and less options for buyers. Another indication is that homes on the market this year got sold faster than they did in the previous year. In 2010, the average home got sold in 67 days and this year, the average home got sold in 60 days.
It's vital to do a deeper analysis than merely look at changes in median or average selling prices - as suggested by the recent closed sales prices in Hillsborough. Median sales values are down by 10% and average selling values are down by 5% during the first ten months of 2011. Prices appear to be down from the end of 2010 by about $200,000 - $300,000. The values, no matter how accurate, can still be misleading since a shift in the type of home sold in 2011 as compared to 2010 has been observed.
In 2011, the average size of a home that got sold has been 3,800 square feet while in 2010, it has been nearly 4,200 square feet. The 400 square feet difference, with the average price per square feet at about $700, is approximately equal to $280,000 - equivalent to the entire change in average/median prices. As a matter of fact, selling values seem to be increasing when we control for the change in the size of homes being sold and look at just price per square foot.
The strength of the market continues and though there are continued targeted price drops, sellers do not see it fit to reduce their prices significantly just to entice buyers because of the demand. In each of the last seven months of 2011, the sale price divided by list price has been above 95% - on the average, homes have been sold for more than 95% of their asking price. The sale price divided by list prices was at or above 95% in only three months, in the 15 months from January 2010 to March 2011. The normal rate differs by area and even during the boom years or 2004 and 2005, the normal rate has been 100% in Hillsborough areas.
Raziel Ungar is a top-performing Real Estate Agent given numerous awards and distinctions for his outstanding success in the real estate industry. He has been recognized by the International President's Circle, placing him in the top 1% of Coldwell Banker Agents nationwide for 2010 and in the top 1% of San Mateo County Realtors. To search for Burlingame, Hillsborough, and San Mateo area real estate, visit http://www.BurlingameProperties.com. You'll find extensive helpful community, neighborhood, and school information! Plus, our well known blog has plenty of current information on the market and what's happening around town!
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