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Monday Morning Market Minute – July 11th, 2022

Real Estate Update – Mid Peninsula

Dan Gilmartin reviews the weekly home inventory numbers.

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Hi, this is Dan Gilmartin, part of the Gilmartin Group Real Estate Company in Burlingame, California, July 11th 2022, with your Monday Morning Market Minute.

Okay, single-family inventory from South San Francisco to Redwood city right now is, 262. That’s up from last week’s 252. Last year at this time, that number was 164. 2020, that number was 187. 2019, that number was 180. And the 2018 number was 155. That average days on market for all the active homes on the market right now is 39. That’s up from last week’s 37 1/2. We had 57 homes come on the market. That’s a big number. Last week, that number was 29. But again, as you heard me say, we were going into the 4th of July holiday weekend. So post-4th of July inventory came on the market, 57. And 27 homes went into contract. Last week, that number was 20. The average days on market for the homes that went into contract was 23 1/2 days. Last week, that number was 21 1/2 days. And TFTs, 0. Good news there.

Condominiums right now, 183 condominiums on market. That’s up from 164 of last week. Last year at this time, that number was 128. 2020, 129. 2019, 79. And the 2018 number, 67 condominium, townhome on the market. Wow, 183. Now, average days on market for the condos, townhomes that are on the market right now, 36 1/2 days. And that is actually down from last week’s 39 1/2. We had 33 condominiums come to market. Last week, that number was 18. That’s a big number, but again, post-4th of July weekend. And we only had, ooh, low number, 5 condominiums, townhomes go into contract. Last week, that number was 14. So maybe the condominium-townhome buyers are still on that 4th of July vacation. The average days on market for the condominiums that went into contract, 33 days. Last week, that was 27 1/2. So that number went up for average days on market. And we had 1 TFT on the condominium market.

We had 16 homes expire, cancel withdraw from the marketplace. Kind of a high number. And here’s a whopping, huge number, biggest number for 2022: 38 price reductions. That beats, I believe, 35 was our last high number there. And that’s several weeks in a row. Although last week was low. But the weeks prior to last week, it’s been a high number, there price reductions.

So total-total from South San Francisco to Redwood city, single-family homes and condominiums, inventory is 445. That’s up from 416 of last week. Last year at this time, that number was 292. 2020, that number was 316. In 2019, 259. And the 2018 number, that number was 222. The last time we were this high, 2020, October of 2020. We had 441 total-total homes on the market. That was the peak for 2020. Here we are, 445.

Now this is very interesting because although that sounds like it’s a big number, it’s still relatively a low number. The 2008 recession, if you will, we were coming out of that. I was looking back in 2012. 2010, the total-total number was 933. 2011, the total-total number was 841. We were coming out of that 2012, 403. And this kept going down, down, down. So the last time we were in this type of transition, if that’s what I want to say, was back in 2011. Again, in the big, big picture, this is still low inventory. I mean, we’re still half the inventory it was during the 2008 recession. Double the inventory.

So, interest rates are still holding steady on a historical level. We all know it’s still very, very low. More inventory for the buyers. That is great news. We have a normalizing market. This is actually very, very good news. Sellers, if you’re thinking of selling your home, still a great time. It’s just the strategy, the process and the procedures, that now makes the huge difference.

Thanks for listening, have a great day, and I’ll talk to you next week.

 

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