In this San Mateo Condo Real Estate Price Report, we’ll give a quarterly overview of what is going on in the City of San Mateo’s Condominium Real Estate Market. We’ll look at data from Quarter 1 2007 – Quarter 3 2009.
Downward Price Trend for San Mateo Condominiums
The downward trend continues as the median price for all condominium units in the City of San Mateo fell to $390,000; down from its high of $561,250 in 2nd Quarter, 2007.
- 23 of the 61 San Mateo condominium owners had to reduce their price from the original list price to affect a sale
- 2 Bedroom units dominate the sales mix, as expected
- 38 of 61 units sold were of the 2 Bedroom variety including townhouses
- 14 of 38 condos had price reductions
What Does the Downward Price Trend Indicate?
This indicates a price sensitive, discriminating market of San Mateo condo buyers who are more demanding and value conscious.
What Sold in San Mateo?
61 San Mateo condominium units sold in the last 90 days reflecting a significant decline off the peak of 141 in the 2nd Quarter, 2006, corresponding with a dramatic decline in the total sales volume to $28,919,182 – off its high of $81,569,608 in 2nd Quarter, 2006.
Where is the Real Story in the San Mateo Condo Market?
The real story lies in the marketing time.
- 38 of the 61 condominiums sold were on the market for 31 days or more
- 35 of 38 sold for less than the original list price
- Only 4 of the remaining 23 units that sold in less than 30 days, sold for more than the original list price
This indicates sellers continue to overprice their units and must not have yet recognized that the City of San Mateo condominium market has lost its bloom. The upward trend in marketing time – as calculated by the days on the market – for all bedroom configurations shows he need for sharper pricing if a sale is expected.
What About the San Mateo Condos that Didn’t Sell?
60 sellers cancelled, withdrew and saw their listings expire because the market rejected the price and terms offered.
New and Current San Mateo Condos for Sale
New listings are off by more than 50% from previous highs and current inventories have climbed to 120 units denoting an inventory build up since 4th Quarter, 2007. Of the 107 condominium units currently for sale in the City of San Mateo, 81 have been on the market for more than 31 days – 41 of which have already reduce their price from the original.
What’s Ahead for San Mateo Condos?
We would expect the market activity to diminish as the seasonal slow down takes hold. Owners who really need to sell must acknowledge the message of the market. Competition is driving this market. Your unit must be the top 1 or 2 values in the complex to expect a sale.
There are big changes ahead for condominium owners and buyers. HUD announced new, stricter underwriting standards that could drive down values of San Mateo condominium units in complexes that are not approved by HUD. Fannie Mae and FHA will loan only on complexes that have been approved. Complexes that are mismanaged, underfunded, have litigation pending or have too many tenant occupied units will not be approved. No approval, no loan – and no sale.
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Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
