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, March 6th, 2023, with your Monday Morning Market Minute.
Okay, single-family inventory from South San Francisco to Redwood City right now is 150. That is up from 139 of last week. Last year at this time, that number was 107. 2021, that number was 141. And in 2020, that number was 131. Again here we are at 150. We had 36 homes come on the market. Last week, that number was 38. And we had 25 homes go into contract. Much better than last week’s 17. But, not quite the number that we like to see in a week in, week out basis. The average days on market for the homes that did go into contract was 31 days. That’s actually up from last week’s 26 1/2 days.
Condominiums right now, 114 condominiums, townhomes on the market. That’s up from 109 of last week. Last year at this time that number was 78. And in 2021, that number was 104. And in 2020, that number was 61. Again, here we are at 114. We had 21 condominiums, townhomes come on the market. And 15 condominiums go into contract. Last week, that number was 15. That’s a very healthy number for condominium-townhome sales.
We also had 6 homes either expire, cancel, withdraw from the marketplace. That’s a low number. But we had 21 price reductions. That’s a very, very high number for price reductions.
So total-total, from South San Francisco to Redwood City, single-family homes and condominiums, inventory is 264. That’s up from 248 of last week. Again, to be expected, as we get more into the year, the inventory will increase. And here we are at 264. Last year at this time, that number was 185. In 2021, that number was 245. In 2020, that number was 192. Again, here we are at 264.
So, where are we right now? The market has certainly stabilized. Last week, interest rates went up. And then today, this morning, I think I looked and it went down a little bit. So we’re more of a stabilized market at the moment. I wrote 6 things that can happen in a more stablized market.
Number 1, I wrote down, “There’s more investment opportunities.” Look for long-term investments. It’s a good time to do that.
Number 2, I wrote down, “Upgrade opportunities.” In a stabilized market, it’s good for current homeowners to upgrade to a bigger home, or upgrade to a better neighborhood if you’re eyeing a better neighborhood.
Number 3, downsizing. It’s more affordable for your downsizing move. A good time to renovate. You’re not thinking of buying or selling, but it is a good time to renovate. Increase your home’s value.
Number 5, there’s some deals out there that could be a good flipping opportunity. If a particular home is stale and needs work, potentially you could find a good flipping opportunity.
And the sixth thing I wrote down is “Negotiating power.” Again, back to the stale conversation. any home on the market for more than 30 days, that home is stale, meaning the market just doesn’t agree with the price, doesn’t agree with the features and benefits of the home. And there could be a negotiating opportunity there.
Thanks for listening. Have a great day. And I’ll talk to you next week.