San Mateo County Market Update - December 2023

The market has mostly gone to bed for winter.... but there are still excellent opportunities for sellers and buyers.

Each year, individuals owning homes or considering a relocation encounter a crucial choice: to take action immediately or postpone until after the holidays. While some might hesitate or withdraw their property listings, the holiday season surprisingly presents an excellent opportunity for sellers and buyers alike. According to Dave Ramsey "The majority of potential buyers conduct their home searches online, and the post-family meals and gatherings atmosphere, characterized by warmth and positivity, creates a favorable setting for home browsing. This period offers a strategic window for your home to appear in their search results" Additionally, buyers can benefit from the reduced competition during a time when many are on vacation, distinguishing it from the more bustling spring and fall markets.

Here are four reasons why you should sell or buy your home during the holidays!

Less Inventory, Less Competition

Winter truly represents an advantageous period in the real estate landscape. As spring arrives, the real estate market undergoes a significant shift, becoming a highly competitive arena with a plethora of options. This heightened competition poses challenges for sellers striving to distinguish their properties in the saturated market, while buyers find themselves in a tight spot competing against potentially numerous counterparts. However, during the winter months, the market experiences a reduction in available homes and a decrease in active buyers seeking to make purchases. Consequently, competition diminishes on both ends. For sellers, this presents an opportune moment to showcase their homes prominently, while for buyers, it provides an excellent opportunity to explore and purchase in a less fiercely competitive environment.

Appealing to Growing Families

How many family gatherings have you been to that are just busting at the seams? Not enough chairs or space at the table, some people brave a cold patio or huddle on the couch. After a packed family event, some may look to have more space for next year’s gathering. To add to the mix, more babies are born from July to October than any other time which sets the stage for more families looking to upgrade their homes later in the year. Melissa Temple shares with REALTOR.com, “Once baby is home and settled, these parents may want to start the year in a new, and more spacious, family home.”

The Year End Brings out Serious Parties

While some individuals casually peruse homes during the spring and fall months, consider the heightened level of commitment from a potential buyer braving freezing weather or interrupting holiday festivities to explore your property during winter. Winter buyers often operate under time constraints, such as expiring leases, impending relocations, or existing contracts on their current residences. This urgency significantly raises the probability of a swift and earnest property purchase. According to San Francisco Real Estate Agent Nina Hatvaney, the year-end becomes an opportune time for home buyers because some sellers may be motivated to sell before the year concludes. In cases where they anticipate a loss, selling by the year's end allows them to write it off on that year's taxes. Hatvaney emphasizes the psychological impact on sellers, stating that the looming end of the year encourages a desire for resolution. In essence, during winter, individuals are more inclined to finalize deals promptly, with less inclination to procrastinate.

Make the Most of Festive Free Time

While the holiday season might seem like an unlikely time for home hunting, it unveils a unique opportunity. Contrary to the assumption that people are too busy, many individuals actually enjoy more time off during the holidays. This translates to increased moments for browsing through home apps, envisioning future decor, and even scheduling home showings. Don’t underestimate the power of holiday downtime when it comes to capturing the attention of potential buyers.

According to Dave Ramsey, “If you checked the numbers, you’d find that plenty of homes are sold during the coldest months of the year. From December 2022 to February 2023, nearly 800,000 homes sold in the U.S. That’s a lot of houses!”

So if you’ve been wondering whether to put off buying or selling a home until spring, we recommend don’t wait, there are several advantages to buying or selling this winter.

How does October compare to November?

As we approach the end of the year, the market is shifting into winter mode, which is typical seasonality for the Bay Area real estate market.  We saw a slowing in market activity, in terms of how many new properties entered the market and sold, but we saw increases in other areas.

There were 0.65 % fewer sales compared to September. In November, we saw 464 new listings in October and 284 closed sales. Homes sold slightly slower, selling on average in 25 days in November compared to 22 days in October. Median Sales prices were 10.9% lower in October at $1.72M.

Our data is based on averages for Single-family homes in San Mateo County over the last 90 days (Sep-Nov 2023). This data was gathered on December 06, 2023.

Thinking of selling? I'd love to discuss your home's value and positioning in the current market. Call or text Kevin at 415.283.7919 or email Kevin at Kevin@PickettRealEstateGroup.com