NOTE:  FINAL TEXT OF LAST QUARTER’S REPORT

Higher-end Peninsula Communities See Rising Prices,

Despite Modest Decline in Existing Home Sales

Resale home prices continued to edge higher across many parts of San Mateo County during the third quarter as steady demand for competitively priced homes in mid- to higher-priced central Peninsula communities made up for modest declines in the number of sales at the entry level, according to a report by the research division of Better Homes and Gardens Mason-McDuffie Real Estate based on an analysis of MLS data.

The median price of an existing, single-family detached home sold during the third quarter rose to $921,093, up 2 percent from $902,025 in the second quarter and 8 percent from the third quarter 2009 median price of $852,732.  Eight of 11 communities experienced both quarter-to-quarter and year-over-year median price gains, led by Brisbane (up 32% and 51%, respectively), Redwood City (up 10% on the quarter and 17% for the year), and San Carlos (up 7% for the quarter and 11% from a year ago).  Home sellers in luxury-home communities like Atherton (up 5% for the quarter and 20% for the year) and Menlo Park (up 10% year over year) continued to benefit from pent-up demand, improved confidence in the stock market and the availability of more favorable terms on jumbo loans.

The number of existing homes sold fell compared with the second quarter and year-ago periods in 11 communities, while seven markets experienced modest increases or remained unchanged.  San Mateo recorded 151 closed sales, down from 161 in the second quarter and 167 a year ago, followed by Redwood City with 134 sales, down from 181 the prior quarter and 137 a year ago.  Menlo Park had 108 sales, up slightly from 104 in the second quarter but up 46 percent from 74 sales a year ago.  Fewer bank-owned properties on the market drove a sharp decline in sales at the extreme southern and northern ends of the county, pushing investors and other buyers toward higher-priced neighborhoods or into competitive bidding situations.

With record-low interest rates, favorable pricing, excellent schools and a strategic location for Bay Area commuters, San Mateo County should continue to be one of the Bay Area’s most active and attractive home markets.  Perhaps the area’s greatest challenge is a lack of available inventory at the entry level, a factor which could drive prices higher absent a significant increase in the inventory of homes for sale.

NOTE: CHARTS REFLECT NEW Q4 2010 DATA

Fourth Quarter 2010 Housing Market Survey – San Mateo County

Fourth Quarter 2010 Housing Market Survey – Cities in San Mateo County

Single-Family Detached Homes

*  Days on market is the number of days a property was listed on the market until it went under

contract at its final listing price. This may not reflect previous listings.

**The median home price for the entire county is the mean of median home prices of

cities within San Mateo County.

Data are sourced from multiple listing services and are deemed reliable but not guaranteed.

All percentages rounded to nearest whole number.