Supply and demand at work
In my recent post “Burlingame Real Estate on Fire” I described the dramatic increase in Burlingame home prices as a result of limited supply. While the price increases are quite common at the moment in many locations in the Bay Area, Burlingame is the third most desirable City in the Northern California and certainly deserves a closer look (to find out why, please read my previous write-ups Why is Burlingame so Desirable? and Why is Burlingame So Desirable? More Reasons and More Facts). In my previous post I used data from the beginning of the year until March 22nd, in this one I am commenting on the sale data for the period from March 23rd until May 10th.
Within 6 weeks since March 23rd we observed market forces at work. The increased demand and led to significant increase in the listing and selling prices (81% of homes sold in first 3 weeks of March sold above the listing price) and that led many owners in Burlingame to believe that it might be the right time to sell. Let’s then look to what happened since March 23rd .
The number of listed, pending and sold homes dramatically increased. In the period of last 6 weeks 33 homes sold comparing to 36 that sold during 11 weeks from the beginning of the year until March 22nd. As of today (May 10th) we have 27 homes active and 32 are pending and 68% of all homes sold from the beginning of the year were sold at or above the listing price. This number increased to 76% for sales completed during the last 6 weeks. Six of the ten most expensive homes sold during that time are located in Easton Addition reasserting this area as either one of the most, or the most desirable part of Burlingame. But if so many homes were sold or are being sold at the present time, is it enough to cool down the demand and slow down the price increases? Will prices continue increasing or the market already picked? We will find out in next few weeks.
The next couple of weeks will clearly show the direction of where the market is heading and sustainability of the recent price increase. In the meantime, let me share with you interesting homes that either recently sold, are pending, still active on the market at the present time or just are worth of showing.
A few months ago San Francisco Magazine heralded Burlingame Terrace to be among 10 up and coming neighborhoods in the Bay Area. Here are pictures of few homes in this neighborhood.
1321 Sanchez Av (still active as of May 8th)
1105 Edgehill Dr (pending)
736 Neuchtal Av (pending)
Willborough Pl (none of these properties are on the market at the present time) - a block-long strip of early 20th century Tudor revival homes. To read more about this place click here: Willborough History.
1401 Vancouver (pending)
105 La Mesa (pending)
Will prices in Burlingame continue increasing as fast as until now or increased number of houses on the market will put further increases in check at least for now? As I mentioned in my previous post: “By summer 2013 we will know if it is a transition to a fully fledged boom or something else…”.