Tuesday, July 6, 2010

5 reasons why the San Francisco Peninsula real estate market is HOT

Abbreviated article from www.examiner.com San Jose. "With all the negativity about the economy and real estate market in the media, it is understandable that most people in the country believe that the current real estate market is terrible. Despite what the media says, the fact is that the San Francisco Peninsula is one of the best and strongest real estate markets in the country.

Reason #1: The latest statistics published by the San Mateo County Board of Realtors report that during the month of May,
Reason #2: The average sale price for a home on the San Francisco Peninsula during May 2010 was $969,435.
Reason #3: Of the San Mateo homes that sold in May, the average time it took to sell those homes was 47 days.
Reason #4: With approximately 25% of the inventory selling in May, its clear that despite the tightening of lending restrictions, buyers are still buying.
Reason #5: These May 2010 figures follow a 2010 first quarter that averaged a 64 day sale time and increasing sales numbers.

With the summer months now here and the natural summer increase in market activity it's very possible that the Peninsula market could go from good to great by September. The adage "numbers don't lie" is rarely wrong. From where I'm sitting, the future looks incredible." From Full article, SF Real Estate Market Examiner 7/5/10.

Posted by Kathy Meeh


Lionel Emde said...

How many actual sales have there been, year over year?
In the figures I've seen, the numbers are way down from the last two years, which were not good years.
This article is propaganda.

Kathy Meeh said...

Lionel from the full article "Mateo County had 418 closed home sales and 665 new listings out of its inventory of 1831 homes for sale. This seems to indicate that around 25% of the home inventory sold in May, with a slight increase in supply."

Yes, I agree this article is "weak" (in fact I debated with "myself" whether to post it), but the desire to hopefully have some Realtor comments in the light of any potential "good news" was stronger.

Lionel Emde said...

Well, I hope our real estate friends have comments about a "hot market" like we've got right now:
Jan. - May 2008 sales in Pacifica : 124
" 2009 " : 144
" 2010 " : 103
( Thanks to Jim Alex for the figures, see them for yourself at SFBlockshopper.com)

Kathy Meeh said...

Lionel, the article relates to the entire county, specific to May 2010, statistics published by the San Mateo County Board of Realtors report, so beyond further conjecture by the article author, the information is true.

Pacifica. Viewing the monthly home sales report provided by Jim Alex, going back the entire recorded 9 years, year-to-date. January through May: 2002 (38), 2003 (90), 2004 (120), 2005 (104), 2006 (116), 2007 (114), 2008 (124), 2009 (144), 2010 (103). Total 9 years, average 105.89. The average is 105.89, this year (Jan-May) sales are 103 by comparison.

Pacifica. Viewing May only as presented by the article: 2002 (8), 2003 (28), 2004 (25), 2005 (21), 2006 (22), 2007 (24), 2008 (26), 2009 (37), 2010 (19). Total 9 years, average 23.33. The average is 23.33, this month (May) sales are 19 by comparison.

Pacifica. What do these statistics indicate? Sales this year are similar to 2005, improved from the stock market crash in 2002/2003, more homeowners defaulted on their mortgages in 2009. Also, real estate professionals in Pacifica might have additional county and city insights not stated here.

Otherwise, what's hot in Pacifica? Increased stolen property, Gorilla BBQ, and Lynn Adams getting county corporate employees to pick-up our beach trash.

Lionel Emde said...

I don't know quite what your point is, but, real estate is not "hot."
The article is propaganda.

I'll say that the only "hot" part of the real estate market looks like banks taking properties back from defaulting owners.

Kathy Meeh said...
This comment has been removed by the author.
Kathy Meeh said...

Lionel, so you didn't like "hot" for a description of the county real estate market? The title and the article are that of the Examiner Real Estate journalist. You might want to complain to him, not me.

Meantime is the Real Estate Market "hot" or ever going to be? Of course current World/USA/State/County economic evidence seems sparse, and doesn't feel much like an upward economic recovery which began to occur 3rd quarter 2009, but here's the link to the "2010 San Mateo county economic forecast" report, see page 10.

Here's some real estate summary information taken from page 10 of the Report. "Median price for a home fell 27% from the $850,000 peak in the second quarter of 2007 to $619,000 valley of the second quarter of 2009, has already returned to growth..... will continue to rise over the next few years, surpassing the 2007 peak by late 2015"...expected, is a significant increase in sales 2011 and 2012." The conclusions, on page 11 are mixed, and including commercial real estate as a lagging indicator, concluding "as businesses slowly fill the backlog of vacant spaces, demand for new structures will rise."

The above Beacon economics analysis and forecast report, should be reliable, but those who also think that's also "propaganda" complain to them. Beacon Economics, the company.

Propaganda has been pretty thick in Pacifica over the past 8 years. I agree we need to cut through that, and an improved 2010 elected city council majority needs to find solutions other than adding more fees and taxes to citizens.

Kathy Meeh said...

That's interesting, it seems my embedded links to source information have disappeared above? So, do it the old fashion way, here's the link which can be posted to your browser to bring-up the report: http://www.co.sanmateo.ca.us/portal/site/SMC

And here's the Beacon Economics (company) location: http://www.beaconecon.com/
These sources are a reputable as it gets.