Archive for the 'Monthly Snapshots' Category
January 2012 – Real Estate Market Snapshot
IPO’s are back; so are “dot-com boom” market conditions
LinkedIn employees and investors are leading the way in the early days of 2012 and the community is a buzz about the upcoming Facebook IPO. With all of this activity, it’s clear that Palo Alto is ground zero for much of the new wealth in the area. The multiple offers and over-bidding are reminiscent of the dot-com boom of ’99-’00. The average selling price in Palo Alto in January ’12 was 4% over the asking price.
Low Inventory Continues
Local inventory of homes for sale were down in January. This trend is consistent with rising (local) consumer confidence. Over the years, we have observed that when home owners have confidence in the economy, they believe the value of their home is rising and are less likely to want to sell in the near term. Buyers, on the other hand, are desperate to find something to buy before they are priced out of their target neighborhoods. This is a happy time for home owners in our area.
Please find charts of market activity and median sales price for single family home sales in January for the last decade in Palo Alto, Los Altos, Los Altos Hills and Menlo Park. Included are % of list price received and months of inventory which give you a more complete picture of supply and demand.
If you have any questions about the charts below or wish to get data and analysis about another town in the area, please contact us.
Source: MLSlistings.com
November 2011 – Market Snapshot
More Homes on the Market; But Less Desirable Locations & Conditions
November 2011 home sales stats were recently published and while inventory of homes for sale was higher than last year in some areas, the “quality” of the inventory was poor. Many homes were not priced in accordance with their location or condition. This caused sales to be fewer than they would have been if those homes had been priced more accurately. Multiple offers, however, are still the standard for most accurately priced homes in this area.
Demand across all price ranges remains very strong following the strong performance of local technology companies. As a result, we expect home prices to continue to appreciate (subject to the non-collapse of the Euro). Interest rates remain at historically low levels which is also increasing demand.
Please find charts of market activity and median sales price for single family home sales in November for the last decade in Palo Alto, Los Altos, Los Altos Hills and Menlo Park. This historical trending, which we compile monthly, gives you the best perspective when evaluating market conditions. If you have any questions about the charts below or wish to get data and analysis about another town in the area, please contact us. We invite you to add your comments at the bottom of the post.
Source: MLSlistings.com
September 2011 Snapshot – Market Activity
The Peninsula real estate market continues to be hot!
Inventories of homes for sale are significantly lower than last year. Competition for the best properties in all price ranges remained strong with over-bidding particularly common in Palo Alto (note the average percentage of list price received was over 100% again in September).
August Snapshot – Market Activity and Median Sales Price for 2001-2011
The local real estate market continues to be hot!
Inventories of homes for sale continued to decline in August while competition for the best properties in all price ranges increased fiercely. Over-bidding, all-cash offers, as-is terms, no contingencies — these were all commonplace terms in many of the sales transactions over the past several months.
Local consumer confidence is finally beginning to waver, based on the non-stop negative economic news both nationally and internationally. This has begun to adversely affect demand for homes that have “issues,” but for most homes it remains a “Seller’s Market.”
Source: MLSListings.com
July Snapshot – Median Sales Price and Market Activity 2011
Palo Alto, Los Altos, Los Altos Hills and Menlo Park
July statistics are going to require more explanation and interpretation than usual. The decline in sales volume in our area is a result of a shortage of inventory, especially in the mid- and upper-range of the market. It is certainly not due to lack of demand.
Another statistic that can be easily misinterpreted is Days On Market (DOM). As the market heats up – as it is now – and inventory declines, homes that have been sitting begin to sell, increasing the average days on market. It is definitely not taking longer for the typical home to sell in the current market.
Lastly, the median sales price decline is a result of the shortage of inventory of homes to sell in addition to the increasing number of “quiet sales”. “Quiet sales” refers to homes being sold through local agent networks and not listed or recorded on the Multiple Listing Service, usually higher priced properties. These two factors are causing the reported median sales price to decline. Homes in our area are most certainly not declining in value at this time.
