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How’s the real estate market in Los Altos, Palo Alto, Los Altos Hills, Menlo Park and and Mountain View? On Fire!
By examining supply and demand you can see why prices continue to rise in our area. For October 2012 compared to the 15 year average, the supply of homes for sale was down by 36%, on average. The number of homes sold (demand) was up by 25%. Fewer homes are on the market and more of them are selling.
See charts below for stats by city.
As a result, median sales prices were up in these five towns by 17%, on average, since October of 2009.
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of October 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
Now that we are three quarters of the way through the second year of a very hot local real estate market, we have to wonder. Is 2012 more like 2000 or 2005? Both of those years were second years of very hot markets, too. However, 2000 was the end of that hot market (the dot-com bust) while 2005 was the second year of a four-year hot market run. There is, of course, no way to know in advance. For that reason, real estate purchases and sales need to be considered long range decisions.Share
Record Median Sales Prices in Palo Alto, Menlo Park and Los Altos Hills
If you’re a seller in today’s market in the Palo Alto / Los Altos greater area, you’ve got to be ecstatic about our local real estate recovery. Year over year median sales prices were up in August by 16% in Los Altos, up 24% in Palo Alto and Menlo Park, and up 36% in Los Altos Hills!Share
The first half of 2012 was a terrific time for home owners in our area!
The supply of homes for sale was low while demand was high. Supply is primarily driven by consumer confidence. Since most owners in our area do not “need” to sell, they tend to want to sell when they think the value of their home may decline. Conversely, if they believe that values are rising, they tend to put off selling. This is what is occurring now. Prices are rising. Owners are staying put.Share
POST FACEBOOK IPO; SPRING JUMP IN INVENTORY
The number of new listings of homes for sale jumped in May. Many sellers had been waiting for the highly publicized launch of Facebook’s IPO to put their homes on the market. Fortunately for those sellers, the standing pool of buyers was deep enough to keep prices high in spite of the surge in new inventory. How long the number of buyers will keep up with the bump in supply is anyone’s guess. We believe it will have mostly to do with consumer confidence, as always. However, if we were planning to sell within the next year, we’d would do it sooner rather than later. Read the rest of this entry »Share