3 Factors Driving the Real Estate Market

There are three critical factors driving the real estate market.

Today, I’m going to talk about three factors that are driving our real estate market right now: Home prices, inventory, and interest rates.

Home prices here in San Mateo County have been corrected from last November to this November. Prices are actually down by 15%, looking at the median sales price for single-family homes. The average price is now just a little bit over $1.7 million. When we look at the pricing compared to where it was at our peak, which was in April, prices are actually down 25%. But April is a little bit of a blip.

Next, you need to consider our inventory. When we look at inventory for what we consider a balanced market, we think about six months of supply. Nationally, there are about 3.6 months of inventory. Here in San Mateo County, we’re at 2.2 months of inventory. What that means is it’s still a seller’s market, and that’s why home prices are still selling for basically what the asking price is. In fact, we’re bouncing right around 99% to 100% of the sale price to list price ratio.

“Prices are actually down by 15%.”

Finally, when we talk about interest rates, this is another bright spot, especially for buyers right now. Interest rates have fallen by about 1% in the last six weeks or so. So you can actually get a jumbo rate, which is what most homes are financed for in our market, for around 5.5%. Down significantly from the high sixes, or some were even quoted close to 7%.

So it’s a really interesting time in our market. Call or email us with any questions. We’d love to hear from you.

Jeff Lang

REALTOR®

Primary phone
(650) 766-6412
License Number
#01221669
Email
[email protected]
Address
1440 Chapin Ave,
Burlingame, CA 94401

About The Author

Jeff Lang's career in real estate is a testament to his strategic, growth-oriented mindset and his dedication to helping clients navigate the unique landscapes of San Mateo County. With his focus on areas from Burlingame to San Carlos and Pacifica since 2011, Jeff has become an invaluable asset to those seeking the perfect balance of urban and suburban life. His appreciation for the county's temperate weather and easy access to a plethora of outdoor activities resonates deeply with his clientele, who seek both the vibrancy of urban living and the tranquility of suburban spaces.

Beginning his journey in commercial real estate in San Francisco in 1997 and later transitioning to residential real estate in La Jolla, Jeff has honed a deep understanding of the industry. Known for his professional, caring, and patient approach, he brings a results-oriented and responsive attitude to every transaction. Jeff's unique strength lies in his ability to outperform competitors by leveraging his extensive experience and education.

Jeff leverages his education having received his JD and an MBA, alongside numerous real estate certifications including Master Certified Negotiations Expert and Certified Luxury Home Marketing Specialist, enabling him to devise winning strategies for each transaction. His approach not only ensures success but also puts his clients at ease, earning their trust and loyalty.

Outside of real estate, Jeff's life is as dynamic and multifaceted as his professional pursuits. His hobbies range from trail running and hiking with his dog to playing golf, tennis, and pickleball, and he's an enthusiastic Peloton user. A proud graduate of law school at the age of 42 and an Ironman triathlon finisher, Jeff's achievements speak to his determination and commitment. These qualities, combined with his professional expertise, make him an exceptional choice for buyers, sellers, and investors—especially in the $2m+ range—who are looking for more than just a transaction but a partnership with a seasoned expert who will turn them into raving fans.

In his over two decades in real estate, Jeff is most proud of partnering with his clients to build the life of their dreams. It helps that Jeff is a negotiations shark, having competed nationally as president of the negotiations team in law school and as a Master Certified Negotiation Expert (MCNE). His MBA and JD also give him and his clients a competitive advantage in every transaction, leading to his listings selling for 4.8% more than the average San Mateo County agent and offers getting accepted 6x more frequently.

If you are looking for an agent who will take on your goal as their own and be relentless in their pursuit of achieving that goal, then you want Jeff as your partner. He’s completed five marathons, including one in Antarctica, and dozens of triathlons, including an Ironman. His passion for taking on a challenge and grinding away to craft creative solutions is unparalleled. Jeff has a natural talent for putting things in perspective, keeping your eye on the prize, and clarifying the strategy to provide opportunities for success in your transaction.

A few of Jeff’s other certifications include NAR’s ePro for advanced digital marketing and NAR’s Green Designations for sustainability in real estate, Pricing Strategy Advisor (PSA) certification, Keller Williams’ BOLD program, and Tony Robbins’ Mastery University. He is also a member of the Institute for Luxury Marketing. These help him and his clients outpace the competition by selling at a higher price and getting offers accepted more often. This track record and partnership continue to provide repeat and referral business, the basis for his growing business.

Reach out to Jeff for a free consultation to discuss your real estate goals. He would be happy to make your goals his and utilize his extensive experience to make it happen.