An incorporated community in the San Francisco Bay area of San Mateo County, Hillsborough, California, is one of the most wealthy communities in America. It is a small community, with just over 10,000 residents, and consists entirely of large homes: A city ordinance requires all home lots be at least half an acre with 2,500-square-feet homes. There are no condos or apartments in the Hillsborough real estate community.
Over the past year, the Hillsborough community has seen its real estate absorption rate fall significantly. It started off the year at 7.7%, peaked in February at 12.8%, and by the end of 2009 had stabilized at 3% over the last three months. Real estate absorption rates reflect a market’s ability to absorb new homes for sale on the market; a lower rate suggest a decline in inventory.
In February of this year, there were 82 Hillsborough homes for sale on the market, a slight increase of 1.2% from both January and from February of the last year. There were 14 Hillsborough homes sold in February, a positive sign, as that constitutes a 40% increase over the prior month and a more than 55% increase from one year ago in sales volume. Sellers are receiving slightly less than their asking prices now, however, as the sales-to-listing price ratio in February was 94.7%, down less than 1% from both the prior month and last year.
Prices of Hillsborough homes for sale also show continually encouraging upward-leaning trends. In February, the median price of a listed home was $2.59 million, an increase of 8.1% from January’s prices and bettering February 2009′s price by 8.3%. For homes sold, the median price was $1.94 million, down more than 27% from January but up by more than 39% from one year ago. The median price per square foot of homes sold was $639, up 1.4% from January and up 7.4% from a year earlier.