San Mateo Real Estate Absorption Rates November 2008, 2007, 2006

<br />


It seems that the cities with the most dramatic year-to-year changes are the ones where we’ve seen the biggest price drops, short sales and foreclosures:  Daly City, South San Francisco, East Palo Alto.  Buyers have been flocking there looking for deals – and finding them.

As agents we can often anticipate changes before the numbers actually show it.  We’ve been talking about how ironic it is that these properties have been receiving multiple offers, sometimes over the asking price – as low as they may be.  Some of these areas have seen incredible declines in inventory.  The question is:  Will that continue?

I wish I knew and so does the rest of the nation.  The only way we know when we’ve hit the bottom of the market is when we look back at the statistics; oftentimes, after the decline has started to resolve.

11/30/2006 11/30/2007 11/30/2008
Atherton 3.2 11 23
Belmont 1.3 2.4 2.8
Brisbane 1.6 4.5 8
Burlingame 1.4 3.3 3.5
Colma 0 2 1.5
Daly City 2 8 1.7
East Palo Alto 3.3 21.7 1.1
El Granada 6.3 25 3.8
Foster City 1.1 3.8 7
Half Moon Bay 2.1 6.9 15.8
Hillsborough 3.2 3.1 7.4
La Honda 5 15 10
Loma Mar 0 0 2
Menlo Park 1.4 2.4 4
Millbrae 2.6 5.4 3.3
Montara 6.3 6.3 24
Moss Beach 13 5.5 7.5
Pacifica 1.9 6.7 3
Pescadero 8 12 8
Portola Valley 3.1 8 13.5
Redwood City 2.5 4.5 3.1
Redwood Shores 1.7 2.5 13
San Bruno 2.6 5.9 1.5
San Carlos 1.8 2.2 3.6
San Gregorio 1 2 2
San Mateo 1.4 2.6 2.96
South San Francisco 3.5 6.2 2.3
Woodside 7 2.5 14

The absorption rate is a quick way to see if the number of homes for sale in San Mateo County is going up or down.  It’s just one of the statistics used to evaluate pricing.

What you’re looking at is how many months’ inventory there is on the market.  The assumption is that it will take X number of months for all of the houses currently on the market to sell.  More inventory = longer to sell.

You can also see if the area is a buyer or a sellers’ market. The National Association of Realtors defines a balanced market as one is which there is 6 months of inventory.  More than 6 months, it’s a buyers’ market; less is a sellers’ market.

July 2008, 2007, 2006 absorption rates
August 2008, 2007, 2006 absorption rates
September 2008, 2007, 2006 absorption rates

Got a San Mateo County real estate question?   Call me at 650.888.9268 or send me an email Vicki [at] CallVicki.com.   If you like what you’ve read, subscribe to the San Mateo Real Estate Blog feed.

Vicki Moore About Vicki Moore

Office:
RE/MAX Star Properties
282 Redwood Shores Parkway
Redwood Shores, CA 94065

By Phone:
650.888.9268

Trackbacks

  1. [...] July 2008, 2007, 2006 absorption rates August 2008, 2007, 2006 absorption rates September 2008, 2007, 2006 absorption rates October 2008, 2007, 2006 absorption rates November 2008, 2007, 2006 absorption rates [...]

Speak Your Mind

*