Wow, what a Q1 2022. Just an astounding first few months of the new year. The market is RAPIDLY shifting, if you are about to buy and/or sell, it’s critical that you work with someone who has the pulse of the market and who you trust to provide you with unfiltered advice.
- Even a couple month ago trends/date is often outdated
- So called “experts” are just looking for soundbites and do not know the fine nuances of the market
- Real estate is highly localized and the submarkets may be materially different from one another
Below is a matrix summarizing SOLD data for single family residences from February 1 to March 31 from 2020, 2021 and 2022 in San Carlos, Belmont and Burlingame. I chose those 3 cities as representative of mid-Peninsula, but should be directionally similar to other cities. The matrix is quite telling:
Burlingame, San Carlos, Belmont All SFR – Sold between February 1 and March 31
|% Above List||3.1%||9.0%||16.5%|
|Avg $/sq. ft.||1,146||1,256||10%||1,501||20%|
- Q2 2020 was the start of the pandemic and shelter-in-place
- 2021 had 150 sold transactions to start the new year with a 9% average increase from list to sold price and the average $/square feet increased YOY of 10%, as buyers demand rapidly increased
- Start of 2022 saw a MASSIVE decrease in # of sold transaction by 47% (almost half of last year’s volume) which led to a $/square feet increase of 20% with incredibly competitive multiple offer bidding wars for most houses jumping 16.5% from list price (my most popular blog post from 9 years ago is still highly relevant https://taosiliconvalley.com/2013/08/26/microeconomics-101-for-real-estate-2/)
As I write this at the start of May, we still see strong buyer demand, but this has flattened a bit, due to the following:
- Spike in mortgage interest rates impact the loan qualifications
- High inflation affects consumer confidences
- NASDAQ has dropped nearly 20% since start of the year which affects down payments due to high technology centric buyers
- Buyer fatigue from losing out multiple times in past 6 months
My Incredible San Mateo Village Listing from Q1
I had a sweet listing of a 4bd/3ba completely modernized home with high end finishes and exquisite design details. I helped pick out some of the finishes including tile work when preparing the house for sale. Check out the full listing pictures/details. https://www.zillow.com/homedetails/3630-Santiago-St-San-Mateo-CA-94403/15538642_zpid/
- Approximately 250 people attended the only weekend of open houses. It was an absolute madhouse.
- 18 groups requested disclosures packages
- List price was $2,198,000, we received multiple offers, and it closed at $2,680,000 to very excited buyers.
What was the secret formula?
- Totally renovated house that had some interesting style, unique high-end finishes
- Terrific location in heart of San Mateo Village
- Coldwell Banker and my aggressive marketing program absolutely blasted online, email, television, neighborhood mailers, and print advertising. Anyone looking in the mid-Peninsula saw this listing!
- Underrated part of optimizing results is marketing the high value parts of property, understanding buyer psychology and creating a process to motivate offers from qualified buyers, and being able to talk to buyers and their agents explaining the nuances of the property.
My Upcoming Listings in May/June
- Woodside Plaza in Redwood City – we are in the final preparations on putting this exquisite 3bd/2ba 1650 sq. ft. house with a totally sweet 350 sq. ft. ADU/Cottage w/full bathroom, and has the best backyard entertaining area I’ve ever seen (not located in Hillsborough or Atherton!). The backyard has this large vaulted covered patio area that has an entire outdoor kitchen, recessed lighting, heat lamp that can be used all year round, that then extends to another patio area with a built-in BBQ area next to a hot tub and grass area on an oversized lot. This is a must see just to check it out.
- A large 5bd/4ba Daly City house – we are preparing this house for early June. Terrific location nearby Serramonte Mall, and transportation options. Upstairs is 3bd/2ba, and downstairs has permitted large living space with 2bd/2ba and living areas.
If you or know anyone interested, feel free to contact me at Peter.Tao@cbnorcal.com, and I can try to allow showing as we get closer to coming on market. Or call me if you just wanted to talk real estate, travel or the Golden State Warriors!