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, October 10th 2022, with your with your Monday Morning Market Minute.
Okay, single-family inventory from South San Francisco to Redwood City right now is 256. That’s up slightly from 253 of last week. Last year this time, that number was 167. 2020, 241. 2019, 213. And the 2018 number was 238. Again, here we are at 256. The average days on market for the current single-family homes on the market is 42, which is up, hovering around 40, so we’re up a couple of days there. We had 45 homes come on the market. Last week, that number was 40. And we had 28 homes go into contract. Last week, that number was 24. It’s almost half the number we like to see week in and week out basis. But still, 20 homes go into contract. The average days on market for the homes that went into contract is 25 days, up slightly from 21 days.
Condominiums right now, 147 condominiums, townhomes on the market. That’s down from 160 of last week. Last year, this time, that number was 142. 2020, 200. 2019, 116. The 2018 number, 90. The average days on market for the active condominiums, townhomes on the market right now is 55 1/2 days. That is up from 45 days. We had 13 condominiums come on the market. Last week, that number was 17. So even less condominiums came on the market again. And 16 condominiums go into contract. Actually, that’s a pretty good number, better than last week’s 20. Mid-teens, high-teens and highers, obviously a better number. But mid-teens is definitely a good number.
We had 15 homes expire, cancel, withdraw from the marketplace. And again and again, 46 price reductions.
So total-total, from South San Francisco to Redwood City, single-family homes and condominiums, inventory is 403. That is down again, last week, from 413. But that’s two weeks in a row here. We’re going down. Like I’ve talked about, we’re usually starting to test a year-to-date peak high inventory. As a matter of fact, the last couple of years, this was the week where we hit a peak inventory and started going back down towards the end of the year. But here we are at 403, going down.
If this continues, very interesting. Starting off in 2023, a market with very, very low inventory. So that’s obviously what we’re watching. Last year at this time, that number was 309. In 2020, 441. 2019, 329. And the 2018 number, 328. So here we are at 403.
So where are we? Hey, macro-number on inventory, very normal. Very doable. Right? The homes that are pricing correctly, meaning the new market versus the old market. They’re actually selling quite fast. Interest rates are clearly up. So if you’re thinking of buying a home, and you’re saying to yourself, “I think prices are gonna come down.” Inventory is gonna continue to go down. We’re gonna start holding steady, I believe, on the new prices that we’ve found. The new market price.
So, where does that leave you? Do you think interest rates are gonna go up even more? If so, if you’re in that camp, I say right now is a great time to buy. Especially ’cause there is confusion, and in confusion lies opportunity. Now can be a very good time to buy that home that you’ve been looking for. Especially if it’s the one on that street. That house that you’ve been looking for. And again, if you’re gonna stay in that home for 7, 10+ years, at the end of the day, in the long run, it was gonna be a good decision. And as interest rates probably go up, they’re gonna come back down. When that happens, you refinance and get into a new, lower rate. So now could be a very good time.
Sellers, you’re thinking of selling your home, inventory is happening. You just gotta do the right thing, put the right price on there, the new price, you can create multiple offers. We can do that for you.
Thanks for listening, have a great day and I’ll talk to you next week.