San Francisco Peninsula Housing Market Still Looking Steady and Strong

Everyone has read the latest headlines predicting theback decades. A collection of unique characteristics
total collapse of the housing market. Potential buyersare attributable to the county's housing strength.
and investors nationwide are holding their breath andFirst, San Mateo County has an acute shortage of
biding their time, waiting for the bottom to fall out sobuild-able land. By industry standards the county is
they can capitalize on the weakness in the market.effectively built out. Most of the new housing
Sellers are shell shocked and worried, how will theirconstruction is "in-filling" (the phenomena where is
home sell now?builder finds a property with an old, worn-out structure,
But if you are a potential buyer or seller in San Mateodemolishes it and builds a bigger, better more valuable
County, you might want to reevaluate your strategy.structure). This drives up the aggregate value of the
As David Lereah made famous in his book of theneighborhood and increases the tax base.
same title, "All Real Estate is Local" and local buyersThen, the county is locked in by well defined
and sellers need to understand the intricacies of theirgeographic constraints. The City of San Francisco to
own markets.the north, the suburban sprawl of Silicon Valley on the
San Mateo County, California is a performance leadersouth, the Pacific Ocean to the west and the Bay on
and it's not an accident.the east provide no room to grow.
While it is true that the number of sales is off fromAdd the best job market in America, driven by the
past highs and the inventory of unsold homes is upcapital-rich tech industry, and you can begin to see
slightly, industry analysts reported the January 2008how San Mateo County attracts some of the world's
average sales price in San Mateo County wasbest talent (along with their solid paychecks).
$1,206,153. When compared against an average saleMoreover, it's an area loaded with entertainment,
of $1,109,303 for January 2007 and $1,081,979 forrecreational and cultural amenities. It's convenient to
January 2006, it's clear this housing market is stillone of the great cities of the world, San Francisco, and
looking steady and strong.near two phenomenal universities, Stanford and the
The San Francisco Peninsula has some obviousUniversity of California.
advantages to surviving the recent downturn. TheNow add a Mediterranean-type climate and it's clear
market here was never plagued by either over buildingwhy San Mateo County will continue to prosper.
nor is there a preponderance of sub-prime loans.Media reports that indicate that "the real estate
These two factors alone have made San Mateomarket" is collapsing are generalizations. Pockets of
County the most solid housing market in California, ifstrength and stability exist and are recognizable. San
not the entire United States.Mateo County, California is clearly alive, well and poised
Let's talk long term though; housing appreciates basedfor future appreciation. While it can't be denied that
upon two factors: job creation and housing supply. Theconsumer confidence is distinctly affected by media
greatest appreciation is found in markets where thecommentary, it's important not to overlook the facts.
numbers of jobs created exceeds the number ofSan Mateo County, California, is still one of the best,
housing units being produced. San Mateo County is aand most stable, places to live, work and own a home
text book example of this formula, but there is alsoin the US.
more to the story.So, buyers, start looking. The best time to find a good
The Peninsula has a strong history of positive anddeal is any time you are willing to take the time to find
sometimes dramatically powerful appreciation datingit. And, sellers, don't forget to breath.