San Mateo County Real Estate on the Road to Recovery?

By Raymond Stoklosa · April 14th, 2009

San Mateo real estate

What Does the National Media Say About San Mateo Real Estate?

Well it looks like the national media has finally picked up on what we’ve been saying –Bay Area real estate is primed for a recovery. CNN Money published a story that reads:

“But there are signs that California’s housing market may be coming out of this tailspin: Sales volume is increasing, investors are returning and inventory is shrinking.”

The article goes on to an increase in buyers on the market, the decrease of inventory and an increase in investor activity as three prime reasons that the market appears to be recovering.

Why the Current Market Shouldn’t Shock You

When you think about it though, what happened in the past few years in California real estate should not shock anyone. As financing became easier to come by, more and more buyers entered the market. In areas like Sacramento and Fresno, these buyers helped to mask the glut of new construction that was entering the market at the same time. By buying up these homes, they consumed what would have otherwise been excess supply. However, in areas like the Peninsula, where there is virtually no other new construction to be had, these buyers simply helped to create a buying fervor and bidding frenzy that led to record sales prices.

What Happened When Home Financing Came to a Halt?

However, when the credit markets came to a halt, it exposed the weaknesses that the market had been hiding. Too many homes existed in less desirable areas – and they still sit on the market. In prime locations, like San Mateo County, there are fewer buyers in the market to drive up sales prices – forcing them back down.

It All Boils Down to…

It’s just a simple case of supply and demand. The good news for residents and potential residents is that San Mateo County is a resilient area that will continue to hold most of its value, even during downturns such as this one. So buying in the area is generally a solid investment.

Still on the Sidelines?

But the buyers’ market in the Bay Area will not last forever. As we have been saying, there are many signs that point to an impending recovery for San Mateo County real estate. So if you are sitting on the sidelines waiting for the bottom to buy, you better get off the bench and into the market as we may have already seen the low.

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