The residential real estate market was very strong in May, with the majority of homes selling at or over the asking price. Sales activity included more high-end homes. This is typical of the late stages of a real estate market cycle. Today’s market shows striking similarities to the red-hot market of 2000. Homes are selling very quickly and sales prices averaging in excess of 100% of asking price. The month-end inventory of homes for sale is at a record low – also dating back to 2000. The scarcity of homes continues to fuel multiple offer activity (so far) in 2014.
Will the current strong, appreciating market hold until next year? We believe so, unless the stock market takes a significant hit like it did in April of 2000. Here in early June, there are some signs of buyer fatigue. Fewer buyers are touring open houses and there are offers on homes for sale. It will be interesting to see if the typical summer slowdown from mid-June to the end of July occurs this year – last year, it didn’t. This year, weary home buyers (and their agents!) may choose to focus on summer vacations, once children are out of school. And we hope you’ll enjoy your summer, too!
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of May for Palo Alto, Los Altos, Los Altos Hills, Menlo Park and Mountain View. You can’t find this level of historical data all in one place anywhere else, so if you have any questions or wish to get more info about your community, don’t hesitate to contact us.Share