Hillsborough Market: May-June 2010

“Stanley, what's the pulse of the Hillsborough market?"

Everyday, at least one person asks me this. Understandably, there is concern about how the economy is affecting home prices. The good news is that Hillsborough has remained relatively stable for a number of reasons, which I have listed below.

Current state of the market:

• Including pendings, there are approx.100 listings, which is about 30-40% higher than the usual number, so buyers have a lot of choices.
• There are not many foreclosures and those few are in the upper areas.
• If priced right, homes up to $4M are selling.
• Days on the market are longer, due to both a large inventory giving the buyers many more choices and the additional time needed to get lender approval, although buyers eventually do get approval. (This is the #1 biggest hurdle a Realtor must overcome.)
  
  

Who are the buyers and what are they looking for:

• Buyers come from relocation, divorce, or foreign countries, anticipating better schools, residence upgrade and in some cases buyers made some good money during the recession.
• With few exceptions, they want aggressively priced listings. (If you are not serious about selling your house don’t put it on the market.)
• They are willing to wait for a listing to re-adjust its price.
• Homes with flat lots close to El Camino are the most sought-after.
• Homes should be in good condition, with a good floor plan.
• Buyers want a deal so that their equity will not get tapped out.
  
  

Why Hillsborough is strong compared to other areas:

• Beautiful public areas not found in other high-end venues
• Close to SFO and San Francisco
• Top-quality school district
• Enormous amount of foreign money focused on Hillsborough
• High tech/pharmaceuticals nearby (e.g., Genentech)

Bottom line is this...

Even with the economic slowdown, Hillsborough is still vibrant in key areas, especially when you consider the over-priced scenario from a few years back. Hillsborough as a whole did not experience a very large price drop in general and almost no drop at all in the lower Hillsborough area.

For more info on the peninsula market, contact Stanley at stanleylo@greenbanker.com.To receive these market stats by email, please sign up for our newsletter.