I read a recent article written by the chief economist of the National Association of Realtors, Lawrence Yun. He speculates that home sales are down because “Shelter in Place” orders have caused buyers to exit the real estate market. I cannot speak for other parts of the country, but I strongly believe his “analysis” does not apply to the San Francisco Peninsula. To test my belief, I sampled sales since March 1, in six mid-Peninsula cities to calculate the average sales prices and days on market averages. In all six cities, prices have held, if not outright risen. And the days on market averages in five of the six was under 21 days. The sixth city was Redwood Shores, where the days on market average was 9 days. The numbers for the six cities, starting in Redwood City and moving North to Burlingame, are as follows:
Redwood City average sale price was $1,686,757, with a days on market average under 21 days
San Carlos average sale price was $2,057,993, with a days on market average of under 21 days.
Belmont average sale price was $1,884,625, with an days on market average under 21 days.
San Mateo average sale price was $1,805,995, with a days on market average of under 3 weeks.
Redwood Shores average sale price was $2,139,000 with a days on market average of 9 days.
Burlingame average sale price was $2,420,455 with a days on market average under 21 days.
These numbers lead me to conclude that, for the San Francisco Peninsula, the low number of sales is not caused by buyers retreating from the market but rather, BECAUSE FEWER SELLERS ARE PUTTING THEIR HOMES ON THE MARKET. The numbers don’t lie. Perhaps sellers fear that prices are falling or that homes are taking too long to sell. The numbers strongly suggest that these fears are unfounded.