Month-over-Month Changes

In February 2024, the Hillsborough real estate market experienced notable shifts compared to January 2024:

  • Homes Sold: There was a significant decrease in the number of homes sold, down 54% to 6 homes in February from 13 sales the month before.
  • Median Sale Price: The median sale price saw a slight reduction, decreasing by 6% from $4,250,000 in January to $3,990,145 in February 2024.
  • Days on Market (DOM): The time homes spent on the market before selling decreased, with DOM dropping to 20 days in February from 32 days in January 2024.
  • Percentage of List Price Received: Sellers received a slightly lower percentage of their asking price, with the average going from 99% in January to 97% in February 2024.

Analysis

The month-over-month data indicates a cooling in the Hillsborough market with fewer homes sold and a decrease in the median sale price. However, the reduction in DOM suggests that while fewer transactions occurred, homes that did sell moved more quickly. This mixed signal could point to a selective market where buyers are cautious but willing to act quickly on properties that meet their criteria.

Year-over-Year Comparison

When comparing February 2024 to February 2023, the Hillsborough real estate market shows varied trends:

  • Homes Sold: Saw a 20% increase, with sales going from 5 in February 2023 to 6 in February 2024.
  • Median Sale Price: Experienced a significant drop of 15%, from $4.70M in February 2023 to $3.99M in February 2024.
  • Days on Market (DOM): Increased dramatically, from 2 days in February 2023 to 20 days in February 2024.
  • Percentage of List Price Received: Sellers received slightly more, with the percentage increasing marginally from 96% in February 2023 to 97% in February 2024.
  • Months of Inventory: Increased from 4.4 in February 2023 to 2.9 in February 2024, suggesting a tighter market despite the slower sales pace.

Analysis

Year-over-year, the market in Hillsborough has tightened slightly with an increase in the number of homes sold but has also become more challenging for sellers, evidenced by a substantial decrease in the median sale price and a longer selling period. The slight improvement in the percentage of the list price received indicates that while buyers may be selective, they are prepared to pay close to the asking price for the right property.

Price Points and Quadrants

The sales distribution by quadrants in February 2024 offers insights into the performance of different market segments:

  • Top Quadrant: 2 homes sold, Median Sale Price: $5,850,444, Median DOM: 76, Avg. $/Sq.Ft.: $1,591.
  • Second Quadrant: 2 homes sold, Median Sale Price: $3,990,145, Median DOM: 20, Avg. $/Sq.Ft.: $1,232.
  • Third Quadrant: 1 home sold, Median Sale Price: $3,715,000, Median DOM: 14, Avg. $/Sq.Ft.: $1,238.
  • Bottom Quadrant: 1 home sold, Median Sale Price: $3,600,000, Median DOM: 117, Avg. $/Sq.Ft.: $1,000.

Analysis

The quadrant analysis reveals a significant variation in the Hillsborough market, with the top quadrant seeing the highest sale prices but also the longest DOM. This suggests that while there is demand for high-end properties, these transactions may take longer to close. The relatively high average dollars per square foot across all quadrants indicate a market that, despite its challenges, values quality and location.

Conclusion

Hillsborough’s real estate market in February 2024 showed signs of adjustment, with a decrease in the number of homes sold and a reduction in median sale prices compared to the previous month. The year-over-year comparison revealed a market experiencing changes in sales pace and pricing but remaining resilient in terms of demand for premium properties. As we look to March 2024, the Hillsborough market remains complex, with potential for both buyers and sellers willing to navigate its nuances.

Data provided by MLS Listings and is deemed reliable but not guaranteed.