COASTALMOUNTAINBLOG.COM: 2010 Coastside Year in Review
2010 Coastside Year in Review
In this year in review we look at the coastside area of San Mateo county. The real estate market we are looking at includes the towns of Pescadero, Loma Mar and San Gregorio.
In this area of the county this year we have seen some significant drops in the median price. The prices in this area can vacillate a bit based on the acreage. If you look at the chart below almost all of the sales in 2008 were on large acreage on 10+ acres, which would skew the price up. In 2009 nothing was on over 10 acres, and this year four of the nine properties were on less than 1/2 acre. It would appear that 2008 was a bit of an anomaly. Given those caveats, there does appear to have been some price softening on the coast. The largest contributing factor appears to be the number of short sales or bank owned properties that were sold this year. Of the 9 transactions 6 were either bank owned or short sales. Compare this with one last year and none in the prior 8 years.
Prices were down 28% from 2009, and they took a 68% drop from 2008 to 2009 (however they were up %60 from 2007 to 2008). As we mentioned before 2008 was a bit of an anomaly so it might be more accurate to compare 2007 to 2009. If we do that prices went down 49% from 2007 to 2009 (excluding 2008).
the days on market increased this year moving from174 to 218. Although not a gigantic change, it is a bit concerning given the number of bank owned homes that were on the market. They typically sell rather quickly because they are usually priced aggressively.
A good sign is that the number of properties that didn't sell was about dead even with the ones that did. This seems to be one sign that the market may be stabilizing. This could also be due in part to the bank owned properties and short sales. Perhaps the people that are trying to sell, either are banks, or really need to sell the property. I would feel much better about this market if the prices had leveled off this year, but that doesn't seem to be the case.
What does all this mean? Time will tell in this area. There are some signs that the market is leveling off, and there are never that many transactions in the area. The drop in price is a bit concerning and I hope it levels off this year, we will have to wait and see on this one.
If you have any questions about this or would like the raw data we would be happy to supply you with it. We are very familiar with this market. Please feel free to contact us at 650-851-8100 or visit our website at www.BirdHayes.com and we can show you how to thrive in this challenging market.
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