Skin in the Game

According to data from the California Association of Realtors, the housing market is weathering the economic downturn better than it did during the Great Recession, as buyers have more skin in the game.

Compared to those who bought their homes before the recession, buyers in recent years have made higher down payments, taken on fewer risky loans and second mortgages, and have higher household incomes. That means we can expect fewer defaults and foreclosures as the market continues to shift.

Rentals on the Rebound

As COVID eviction moratoriums expire up and down the state, investment in rental properties is on the rise and back to pre-pandemic levels. Meanwhile, the wages and wealth of renters have remained pretty much stagnant for the better part of this century, while homeowners have seen a surge in their net worth since the early 90s, despite the housing bubble bursting in 2007-08.

Sale Price vs. List Price

Our housing market — and the greater economy — remain in a period of adjustment, making buyers and sellers more cautious as they wait to see how the dust will settle. One key indicator of this adjustment is the percentage of homes selling below their list price, which you can track in the chart below.

Number Talk: San Mateo County Market Snapshot

It was more of the same on the San Mateo County real estate market in October. Sales continue to dip year over year – down 39% for houses and nearly 50% for condos – and homes are spending much more time on the market than they were at the same time in 2021. Interestingly, median condo sales prices are up 12% from last year, but houses are selling for 5% less.

Number Talk: Time is Money.

As we move into late autumn, we’re still seeing steep increases in home and condo inventory and the number of days properties are spending on the market across all price ranges in Santa Clara County. The numbers remain well below industry averages during normal times, but these are not normal times!