Any would-be buyer or seller interested in San Mateo real estate should apprise themselves of the current market before they begin. According to the latest data from the California Association of Realtors, the San Mateo housing market is undergoing a slow but steady recovery after months of declining home sales across the country. The drop in home sales is a direct result of rising interest rates, but as these rates and inflation start to cool down, buyers will soon return to the market. Here is everything you need to know about the current housing market in San Mateo.
Rising interest rates put pressure on the number of home sales
The rise in interest rates, however, is expected to end soon. Compare March’s interest rate of 6.54% with April’s interest rate of 6.34%. Although the difference is small, it bodes well for the market as a whole. Even the slightest decrease in interest rates offers a much-needed reprieve to buyers hoping to find a home.
Slow but steady recovery and buyer rebound
The San Mateo housing market alone has seen a 20% decrease in housing inventory year-to-year, but this may soon change. On average, there are 24 active home listings in San Mateo per month, which is a positive 4.4% increase from the previous year. The median home price has also decreased by 20.9% from the previous year, paving the path for buyer rebound and a healthier market in the coming months.
The market’s recovery is steady, and experts are hopeful for the rest of the major housing season. This year may very well be the reprieve that everyone needs after a particularly intense market in 2021 and 2022.
A San Mateo real estate market snapshot
- The median price for a one-bedroom home in San Mateo is $329,000. As of May 2023, only 15 listings for one-bedroom homes are available.
- A two-bedroom home in San Mateo sells for an average of $988,000 per unit. There are about 41 listings for two-bedrooms homes available.
- On average, a three-bedroom home doubles in price to $1,560,000, with only 14 listings available as of May 2023.
- Four-bedroom homes are highly coveted in the area, with a median price of $2,450,000. These homes are even more limited in supply; there are only 14 four-bedroom homes for sale in San Mateo.
The cost of living in San Mateo
What should we take from this?
Everything must balance out eventually as the real estate market regains a sense of normalcy. Buyers, sellers, and investors should consider entering the market soon rather than hesitating and waiting for the perfect moment. These upcoming months will present the prime opportunity for homes to sell quickly and for the best value, especially as families gear up to move before the start of the next academic year. Whether you’re buying or selling a property, you want to team up with an expert agent who can provide exceptional insight into the San Mateo real estate scene and guide you toward your goals.
Partner up with Carly Seiff
*Header photo courtesy of Shutterstock