San Mateo County enters a buyer’s market

It may finally be a buyer’s market in San Mateo County as sales for single-family residential homes fell 18% to 296 from September to October, according to the San Mateo County Association of Realtors.

October’s numbers show that the houses have been on the market for 27 days on average, more than twice as long as October of 2021, according to SAMCAR.

Compass Real Estate Realtor Raziel Ungar said it’s becoming a buyer’s market because there are more sellers than buyers. Homes are also on the market for longer, giving buyers more leverage.

“The sellers want to sell their house at the price from six months ago, or they are just backing out altogether,” said Ungar.

Throughout the month of October, interest rates varied from a 6.75% low to a 7.08% peak, for 30-year mortgages, the highest it’s been in 10 years, according to Freddie Mac.

“People are in a cautious wait-and-see mode right now. Even though prices are down 10-15% from six months ago, because of interest rates, the mortgage would still be more expensive than if you bought six months ago,” said Ungar.

The median sale price for single-family home prices in October was $1.81 million and in comparison in October 2021 median sale price was $1.91 million, according to SAMCAR data.

“It’s fair to say that median single-family home prices are about where they were in July and August of last year,” said Ungar.

But Ungar said October was the quietest month for sales he’s seen in years.

“With so much supply on the market, buyers have a chance to do more inspections on the homes but people are shopping around more than they were able to in previous months,” said Ungar.

Coldwell Banker real estate agent Rachel Ni said a recession is happening based on layoffs, the stock market and home prices, however it’s still a good time to buy a home.

“The market is moving pretty slow because of the interest rates and it gives buyers less purchasing power, pricing them out of homes they could have bought six months ago,” said Ni.

Inventory is also low because some sellers are taking their homes off the market if they don’t need to sell and are waiting for the market to rebound.

For every 10 sellers, about two will take their house off the market and rent it out hoping to return next year when they feel the market will get better, Ni said.

“It’s a great time for buyers to pick and choose what they want,” said Ni.

Banks are more willing to lend out adjustable-rate mortgages than in years past, she said.

For a 5/1 ARM, which would lock in a lender for five years and then the rate would adjust to the market rate at the end of the five-year term, interest rates are 4.95%, according to the First Republic Bank rate sheet.

nick@smdailyjournal.com

(650) 344-5200 ext. 105