A severe lack of homes for sale was the main theme of Mid-Peninsula housing markets in the last quarter of 2017, as well as throughout the entire year. In the fourth quarter, there was less than a one-month supply of homes on the market; in other words, at the current pace of sales, all available inventory would sell out in less than 30 days.
At the same time, buyer demand persisted, leading to significant competition in the market, especially when compared with the fourth quarter of 2016. Buyers increasingly faced multiple offers and paid above asking price nearly 80 percent of the time. Buyers also paid higher premiums than they did in the fourth quarter of last year, an average of nearly 10 percent.
As a result of these competitive forces, the region continues to see some of the strongest increases in median prices across the Bay Area, with overall 2017 appreciation at 14 percent year over year.
Looking Forward: While concerns over the impacts of the tax reform loom over the future of the region, continued economic strength and solid employment should ensure that demand remains strong for Mid-Peninsula homes in the coming quarters. A lack of supply is potential buyers' biggest obstacle. Redwood City Market Data - Realtime
As a commitment to helping my clients increase the value of their home, I am offering a $2,500 design and staging credit (with a signed listing agreement) through March 31, 2018.
Whether you are thinking of selling and/or buying, please contact me to get a more in-depth market perspective and recommendations on adding value to your property.