The mid-peninsula real estate market told a much different story in 2016 than it did in 2014 and 2015. While home prices continued to grow, it was at a far slower rate than the two years prior. The average sale price for homes in the mid-peninsula grew 17.14% from 2013-2014, and 15.14% from 2014-2015. By contrast, the average sales price in 2016 saw only a 2.74% increase from 2015. The most obvious explanation for this slow down is that inventory was significantly higher during the busiest months of 2016 than it had been in either 2014 or 2015. In fact, in some cities inventory was nearly double its 2015 levels through much of the summer and fall months. With more on the market, buyers became more selective, and the bidding wars that were all too common in ’14 and ’15, became much less prevalent in 2016. While I’m sure most homeowners would love to see home values continue to soar indefinitely, the slowdown we saw last year was a welcome sight for buyers who felt the market had been running away from them in recent years.
* For the purposes of this update, the mid-peninsula refers to San Mateo, Foster City, Belmont, San Carlos, Redwood City & Menlo Park.
See blow for a snapshot summary of the 2016 mid-peninsula real estate market. All percentages reflect the change from 2015 values.