In Palo Alto, Los Altos and surrounding communities, the residential real estate market continued an upward trend. Even “the Hills” are bouncing back. Supply and demand continued to move back in favor of sellers with multiple offers common and prices rising.
SINGLE FAMILY HOMES
South and Mid-Peninsula Market Snapshot
? 2010 vs. 2011 ?
The economic recovery has certainly gained traction on the San Francisco Peninsula & Silicon Valley! On April 17th the San Jose Mercury News reported that the top 150 Silicon Valley companies are currently enjoying all-time record profits. A portion of those record profits will undoubtedly be spent on residential real estate. Therefore, we expect increasing demand and rising prices in the near term.
The trend of fewer homes coming to market and, therefore, lower inventory levels continued at the end of Q1. In Atherton through Mountain View inventory was down by 28% on average, while demand was up significantly. As a result, the number of multiple offers for listings continued to increase in these cities and over-bidding was common for fairly priced properties.
Hills Markets Showed Greatest Improvement
First quarter sales in Woodside, Portola Valley, and Los Altos Hills had a dramatic comeback after being in the doldrums since the dot-com collapse of 2001. Sales were up in these three hillside towns by an average of 72% from a year ago.