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Business & Tech

Year in Review: A Mixed San Bruno Real Estate Market in 2011

In 2011, the market began to bottom out in terms of prices, sales remained strong and the number of distressed properties still remained high. Also, the Crestmoor neighborhood continued to recover a year after the Sept. 9 fire.

The San Bruno real estate market enjoyed mixed blessings in 2011. Certain aspects of the market indicated that prices are bottoming out and recovery is forthcoming, while others indicate a continued amount of distress in the market. Certain neighborhoods saw tremendous growth in value, while other neighborhoods suffered in terms of price. Overall, the market finished briskly, inventory went down while sales remained strong and buyer competition for homes increased.

Overall, Number of Sales Rising

One of the more interesting numbers was the continued drop in number of homes available for sale as the year progressed. According to MLS Listings, the year started with a high of 109 homes on the market in January of 2011 but by December the available homes had dropped to a low of 61.

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Despite the consistent drop in available inventory, pending sales—properties entering into sales contracts—remained relatively flat month over month. Sold homes—closed escrows—remained stable over the course of the year as well, and they did not drop significantly as the inventory reduced. The median number of closed escrows per month in 2011 was 29.5, with a high of 36 closed escrows in March.

These numbers indicate that the amount of sales compared to the amount of inventory is rising. This results in greater competition from buyers for premier properties. It also indicates an increased amount of investment activity in single-family and condominium purchases. This is consistent with the notion of continued recovery in the real estate market and that the market may be bottoming out.

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Home Prices Slightly Up

The average sale price for a single family home in San Bruno rose ever so slightly over the course of 2011. Starting with an average sale price of $492,000 in January, the year ended with a slight increase to $497,000 in December, according to MLSListings.com. Over the course of the year, the average sale price fluctuated and saw a high of $609,000 in March.

Sales price numbers for a market like San Bruno’s are often difficult to decipher due to the uniqueness of the neighborhoods and the differences in properties and pricing. For example, in the east side of San Bruno neighborhoods such as San Bruno Park, Belleaire and Lomita Park, prices have risen slowly over the past year despite the number of distressed properties. Average pricing in these neighborhoods started at $344,000 and ended at $355,000, a 3.2 percent increase.

However, on the west side, neighborhoods like Huntington Park and Mills park—which line El Camino to the west—saw a 7.8 percent drop in average price over the past year.  

The best performing and worst performing neighborhoods in San Bruno, according to average price? The numbers may surpise you. The best performing neighborhood was San Bruno Park, which enjoyed a 26.3 percent increase in average sales price over the year—a tremendous jump. The worst performing neighborhood was Rollingwood. This westside neighborhood saw a 17 percent decline in the average sales price—a significant drop. (Mills Park came in a close second at a 16 percent decline in sales price).

After the Sept. 9 Fire

Crestmoor Park 2, the neighborhood hit hard by the Sept. 9, 2010, pipeline explosion, saw real estate values continue to recover. According MLSListings.com, the average active price saw a jump of 15.3 percent. While the average days on the market ended at 128 days, homes in this area sold at 99 percent of their list price. This indicates stable pricing and continued desirability with buyers.

Number of Distressed Properties Remains High

Distressed properties, such as bank owned homes and short sales, continued to maintain a large portion of the available homes on the market in San Bruno. Over the past few years, distressed properties have made up about 40 percent to 60 percent of the San Bruno real estate market. Of the 359 single-family homes and condos sold in San Bruno in 2011, 173 of these were distressed properties. This is nearly half—48 percent—of all sales in San Bruno.

The number of distressed properties in San Bruno has been consistent over the past few years. This indicates plenty of San Bruno homes continue to remain underwater, which keeps a truly healthy housing market at bay. However, the perception of short sales has gotten much better as banks and buyers understand the process and value. Foreclosure avoidance in the market is still a key topic and sellers should continue to educate themselves on the value of a short sale vs. simply walking away from underwater homes.

Overall, the San Bruno real estate market enjoyed a good 2011. The market is beginning to bottom out in terms of price. Sales remain strong while inventory dropped over the year, resulting in higher absorption rates and increased buyer competition. Certain neighborhoods performed better than expected while others lost significant value. Distressed properties continue to make up a large portion of the San Bruno market and are expected to do so throughout 2012. Crestmoor Park continues to recover with homes selling at 99 percent of asking price. Investors continue to get involved in San Bruno, seeing good investment value in the single-family homes here. Overall, I am looking forward to a better and more active 2012 for the San Bruno real estate market.

All of the data compiled for this article was drawn from the San Mateo County Multiple Listing Service.

Joseph Capote is a Realtor with Alain Pinel Realtors. He serves on the board of directors for the San Bruno Chamber of Commerce and the San Bruno Education Foundation. He can be reached at JCapote@apr.com or 650-375-1111. His website is www.SanBrunoViews.com.

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