San Francisco Peninsula Housing Market Still Looking Steady And Strong
San Mateo California March 4 2008 Everyone has read the latest headlines predicting the total collapse of the housing market. Potential buyers and investors nationwide are holding their breath and biding their time waiting for the bottom to fall out so they can capitalize on the weakness in the market. Sellers are shell shocked and worried how will their home sell now?
But if you are a potential buyer or seller in San Mateo County you might want to reevaluate your strategy. As David Lereah made famous in his book of the same title All Real Estate is Local; and local buyers and sellers need to understand the intricacies of their own markets.
San Mateo County California is a performance leader and its not an accident.
While it is true that the number of sales is off from past highs and the inventory of unsold homes is up slightly industry analysts reported the January 2008 average sales price in San Mateo County was 1206153. When compared against an average sale of 1109303 for January 2007 and 1081979 for January 2006 its clear this housing market is still looking steady and strong.
The San Francisco Peninsula has some obvious advantages to surviving the recent downturn. The market here was never plagued by either over building nor is there a preponderance of subprime loans. These two factors alone have made San Mateo County the most solid housing market in California if not the entire United States.
Lets talk long term though; housing appreciates based upon two factors: job creation and housing supply. The greatest appreciation is found in markets where the numbers of jobs created exceeds the number of housing units being produced. San Mateo County is a text book example of this formula but there is also more to the story.
The Peninsula has a strong history of positive and sometimes dramatically powerful appreciation dating back decades. A collection of unique characteristics are attributable to the countys housing strength.
First San Mateo County has an acute shortage of buildable land. By industry standards the county is effectively built out. Most of the new housing construction is infilling; the phenomena where is builder finds a property with an old wornout structure demolishes it and builds a bigger better more valuable structure. This drives up the aggregate value of the neighborhood and increases the tax base.
Then the county is locked in by well defined geographic constraints. The City of San Francisco to the north the suburban sprawl of Silicon Valley on the south the Pacific Ocean to the west and the Bay on the east provide no room to grow.
Add the best job market in America driven by the capitalrich tech industry and you can begin to see how San Mateo County attracts some of the worlds best talent along with their solid paychecks.
Moreover its an area loaded with entertainment recreational and cultural amenities. Its convenient to one of the great cities of the world San Francisco and near two phenomenal universities Stanford and the University of California.
Now add a Mediterraneantype climate and its clear why San Mateo County will continue to prosper.
Media reports that indicate that the real estate market; is collapsing are generalizations. Pockets of strength and stability exist and are recognizable. San Mateo County California is clearly alive well and poised for future appreciation. While it cant be denied that consumer confidence is distinctly affected by media commentary its important not to overlook the facts. San Mateo County California is still one of the best and most stable places to live work and own a home in the US.
So buyers start looking. The best time to find a good deal is any time you are willing to take the time to find it. And sellers dont forget to breath.
About the writer:nbsp;nbsp;Raymond Stoklosa has been in real estate on the San Francisco Peninsula since 1978. With over thirty years of experience he currently coaches his clients through their transactions as the Managing Broker and coowner of the RayChel Realty Group at Keller Williams Realty San Mateo. Raymond is also the author of LivingWellinSanMateo.com
About Raymond Stoklosa
Raymond Stoklosa is CoOwner and Managing Broker of The RayChel Realty Group at Keller Williams Realty in San Mateo. He has been representing home buyers and home sellers in San Mateo and Santa Clara Counties since 1978.
Contact:
Raymond Stoklosa Managing Broker
The RayChel Realty Group ndash; Keller Williams Realty San Mateo
6506552500
http://www.livingwellinsanmateo.com
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