Jeff Stricker & Steve Tenbroeck
Alain Pinel
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Archive for the 'Monthly Snapshots' Category

The Hot Real Estate Market Sizzles in June

The extraordinary lack of homes for sale continues to drive a hot – hot real estate market! Sellers were in no hurry to cash in in June. Instead they’re sitting tight and watching their equity grow. Meanwhile, buyers are fiercely competing for the few homes on the market each week.

We expect this condition to continue until there is some major financial shock, as employment is so strong in our area. Supply and demand is always what it comes down to.  Companies are hiring. Office space is being built at a tremendous pace, but very few new homes are being built in this area.


In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of June 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.

Palo Alto Median Price Read the rest of this entry »

Topics: Commentary, Market Trends, Monthly Snapshots      Please leave a comment.

Hot Real Estate Market Continues in May

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.

Palo Alto Median Price Read the rest of this entry »

Topics: Commentary, Market Trends, Monthly Snapshots      Please leave a comment.

The Party Continues – For Now

April 2014 was another hot, hot real estate month, as the charts below will show. Look at the increase in median sales prices since 2009 and the decrease in the number of homes for sale:

Table April 2014

After 5 years of double-digit price appreciation on average, those thinking of selling need to ask themselves how long they think this market will last. Typically the strong “rising price phase” of the market lasts only 2-3 years. Double-digit home appreciation is unsustainable for extended periods of time. If current home price appreciation rates continue, homes would double in value again within 3-4 years. Will that happen before the market corrects? We think not! For more information on home values or market cycles, give us a call.


In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of April 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.

Palo Alto Median Price Read the rest of this entry »

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Hot Market – Are Buyers Burning Out?

Home buyers have faced a red-hot real estate market for more than two years. It has been common in past hot markets for buyers to become “fatigued” after an extended time of difficult hot market conditions (low inventory, multiple offers, and highly over-asking offers). Some Realtors have indicated to us that they are starting to experience more home buyers backing away from multiple offers and/or becoming more selective. This may indicate they are becoming cautious as a result of “market fatigue”. We will keep you apprised of whether this is a continuing trend or only a short-lived lull in the market. Meanwhile, multiple offers are still the norm due to low inventory. This is also reflected in the few closed home sales in during the month of February.


In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of February 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.

Palo Alto Median Price Read the rest of this entry »

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Will This Hot Market Continue?

As you review the graphs below, you will see that you’d have to go back to 2005 or 2000 to find a market as low in supply of homes for sale as there are in the current market. The median sales price reflects what is being sold rather than how much homes are appreciating in value.  A better metric is the average percentage of list price received by sellers. The current overbidding is as high, or higher, than it was in ’05 and ’00.

This market will continue as it is until the next financial shock causes homeowners and buyers to believe that home prices will fall. Meanwhile, prices will continue to rise as demand for homes is far greater than the supply.


In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of January 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.

PA-Med-SP---Jan-00-14-fixed Read the rest of this entry »

Topics: Commentary, Market Trends, Monthly Snapshots      Comments Off