What's Happening with House Prices in the Bay Area
House prices in the Bay Area have been slumping over the past six months, and this includes Mid Peninsula real estate. It’s a strange occurrence for us. We are used to a strong seller’s market, with ever-increasing prices and multiple offers with no contingencies. It felt like it would never end, until it did.
Single family home sales data for 2022 across the Peninsula is a bit hard to figure out. When you look at the sold price per square foot for 2021 vs YTD 10/31/22, it looks like prices have increased. It is only when you dig into the data by quarter that you get a better view of the situation. It is during the third quarter that the sold price per square foot went down across all the luxury markets: Belmont real estate, Foster City real estate, Redwood City real estate, Redwood Shores real estate, San Carlos real estate, and San Mateo real estate.
An even more interesting view of house prices in the Bay Area involves looking at sold price per square foot per month. When graphed and a trend line is added, this 2022 data is quite enlightening. It shows that all of our Mid Peninsula luxury markets have experienced a downward trend. The graphs below also include a line for the sold price per square foot for the year ended 12/31/2021.
Some of the cities have been more erratic than others. Belmont real estate has been the most impacted, with the sharpest decline and the biggest difference between October 2022 sold price per square foot and the 2021 figure. Foster City real estate, the most affordable of the cities, was the most stable. Redwood City real estate, Redwood Shores real estate, San Carlos real estate (the most expensive of the cities), and San Mateo real estate all have similar downward slopes.
As Mid Peninsula Realtors, we feel the shift. House prices in the Bay Area have definitely adjusted. Yet on the Peninsula there are still some homes that are selling quickly and with multiple offers. Average sales to list percentages for all the luxury communities discussed also remained strong. Even with the market adjustment, there are signs of strength.
To read more about house prices in the Bay Area, read "Is the Mid Peninsula Real Estate Market Bouncing Back?"
Veritas Homes is a boutique residential real estate brokerage servicing home buyers and sellers on the San Francisco Mid Peninsula. Founded by Val Vandervort, Veritas Homes (Latin for “Truth”) is committed to providing outstanding customer service to all and operate with “Truth” at the center of all we do.
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