San Mateo County home prices tumble in July

Median single-family home prices in the county dropped 12% from June to July, down to $1.8 million, according to data from the San Mateo County Association of realtors.

July’s numbers also mark a 10% decrease from July last year, when median prices were $2 million, and a 20% decrease from April this year when prices reached an all time high of $2.25 million, per SAMCAR data.

It’s news that comes as the stock market’s faltered and interest rates have nearly doubled since last year. Rates for a 30-year fixed rate loan climbed to 5.2% this week, according to Freddie Mac — down from 5.8% in June but a big jump from when they hovered below 3% late last year.

The hikes over last year’s rates can spell $2,000 or more on a monthly loan for a home priced near the county median. Additionally, buyers often rely on liquidating stocks to produce a down payment.

The SAMCAR data is based on 330 sales in July, a 12% decrease in activity from June. Homes also spent longer on the market, up to 20 days, compared with an average of 14 days in the first half of the year.

“What we’re seeing is a price correction, it’s just a matter of when are buyers going to come back confidently to the market,” South San Francisco Realtor Wilson Leung said.

He said many buyers are hesitant to purchase homes without knowing how far the market will drop. He added he expects prices to continue to fall, in line with seasonal trends, which typically see buyer activity decrease in fall and winter months.

That said, despite interest rates, buyers at open houses are emboldened by lack of competition, he said. “They’re also feeling that there’s sellers out there that have to sell, so if these sellers have been on market for quite some time, there might be even more wiggle room,” he said.

Buyers in July received 104% of asking on average, a big step down from the second and first quarters of the year when bidding wars drove prices to 112% and 114% of asking, respectively, according to SAMCAR.

Meanwhile 446 new homes were listed for sale in July, compared with 553 the month prior, and 604 in July last year.

The most expensive places in the county in July were Atherton, where four homes sold with a $7.7 million median price, followed by Hillsborough where 10 sales produced a $5.3 million median, according to SAMCAR.

Excluding unincorporated areas, East Palo Alto was most affordable with a $1.1 million median over four sales followed by Daly City at $1.2 million over 36 sales.

corey@smdailyjournal.com

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