The last year or so have been really insane. The first part of 2014 was particularly crazy too…if you ask me that is. It slowed down just a tad since the early summer but I’m firmly of the opinion that a storm is coming and the first quarter of 2015 is going to be just as nuts as 2014 at it’s worst. How’s that possible you ask? It’s simple supply and demand. Right now in Foster City, San Mateo, Redwood Shores, San Carlos and Belmont there’s a grand total of 27 active single family house in all price ranges. That’s from $2,349,000 to $685,000. It’s sort of hard for me to imagine that the lowest priced house in our area is now $685,000…but there you have it.
Do you suppose there’s a few more than 27 parties interested in buying a house in these towns? Have you been to an open house lately? Let’s break it down though…it makes it even more vivid. Here’s the town breakout:
Interestingly, there’s a new Foster City listing here at 249 Shearwater listed for $1,748,000. It’s a flip. These sellers bought it in September for $1,525,000. Nice, huh? I can clearly remember when 100 active listings in San Mateo was normal. Even 2 years ago 20 active listings in San Carlos was normal…but low compared to other markets. Now we have 5? It seems like I’ve done nothing but complain about the lack of inventory here for the last several years. We’re in an extreme drought around here. Worse than California is having with water. Oddly, this morning I read that even with all the heavy rains in the last few days we’re still a long way from ending the drought. It’s going to have to rain another 49 inches this season to catch up to where we should be. That’s after the rain we just got!
That’s sort of what this inventory thing is like around here. We need an inundation of new houses to come back to normal….and that’s simply NOT going to happen. Prices are going to continue to climb.