THE MID PENINSULA MARKET AT A GLANCE: Q1 2018
The Mid-Peninsula's real estate market saw prices increases by 11 percent from the same quarter last year. Some of the growth was driven by more sales of higher-priced homes, especially those priced above $2 million, which jumped by almost 70 percent from the same period last year. At the same time, sales of more affordable homes fell by almost 50 percent, as lower-priced inventory is disappearing at an incredible pace.
Nevertheless, while a lack of inventory has put considerable pressure on home prices, buyer competitiveness has not abated. Buyers are aggressively bidding for homes, and the share of homes selling over the asking price increased further, with about eight in 10 homes fetching premiums that averaged 14 percent. The Mid-Peninsula and Silicon Valley markets are the most competitive housing markets in the Bay Area.
Looking Forward: Insufficient supply levels will remain the biggest concern going forward. At the same time, homebuyers do not seem to be concerned about rising mortgage rates or the impact of the tax-reform package. Still, volatility in the tech stock market may hold back some activity this spring.
Defining the Mid-Peninsula: Our real estate markets in the Mid-Peninsula subregion include the cities of Burlingame (excluding Ingold Millsdale Industrial Center), Hillsborough, and San Mateo (excluding the North Shoreview/Dore Cavanaugh area). Sales data in the charts includes all single-family homes in these communities.