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Archive for the 'Quarterly Updates' Category
Q1 2012 Report – The Facebook Effect – Perception is Reality
MULTIPLE OFFER FEEDING FRENZY IS THE NEW NORMAL
Former Republican National Committee Chairman Lee Atwater has been recognized as the person who coined the term, “Perception is reality”. That phrase certainly applies to our current housing market! Many potential home sellers are convinced they will achieve a higher sales price if they wait until Facebook employees are able to sell their stock after the upcoming IPO. As a result, they are holding off listing their homes for sale. Many buyers believe they will likely have to pay a lot more for homes once Facebook employees are able to cash out. Therefore, those buyers are willing to do “whatever it takes” to prevail in the multiple-offer-feeding-frenzy that is now happening up and down the Peninsula.
We have seen these imbalances in supply and demand before, (’97-’00, ’05 -’07) but not at this intensity. The number of all-cash, non-contingent, quick close offers is truly amazing – and extremely daunting for buyers competing with those offers!
THE RECOVERY CONTINUES
Atherton and the “hills” markets – Woodside, Portola Valley, Los Altos Hills, Saratoga, and Los Gatos – saw great improvement in the average percentage of list price received by sellers in the first quarter. This movement indicates that values are rising. And note the average percentage received in Palo Alto! The median sale price in Palo Alto and Los Altos is now above the previous high of ‘07/’08.
Q4 2011 Market Update
High tech businesses from Cupertino to San Francisco continue to boom. Inventories of homes for sale are significantly lower than last year. The buyer to seller ratio is definitely favoring the seller, particularly in neighborhoods with good schools.
The percentage of list price sellers received for their homes rose again in the 4th quarter. The average selling price in Palo Alto was 3.4% over the asking price! Sales volume was down, particularly in Palo Alto, where folks are currently more likely to buy than to sell. This is also holding down the median sales price figures. For example, there were 50% fewer homes priced over $1.5m put on the market in Palo Alto during the 4th quarter in 2011 than there were in 2010.
3rd Quarter 2011 – Market Update
The economic recovery on the San Francisco Peninsula & Silicon Valley is continuing.
A strengthening jobs market and record low interest rates have continued to support buyer demand. Meanwhile fewer homes were put up for sale during the 3rd quarter compared to a year ago.
Total new listings (in all areas listed) were down by 17% on average from a year ago while sales in the third quarter were down just slightly. The total inventory of homes for sale at the end of the quarter was down by 25% from a year ago. We believe the number of sales would have been significantly higher if buyers had a greater number of homes to choose from.
Q2 Market Update – All Time High for Palo Alto!
In spite of being in the midst of a “Great Recession,” Palo Alto Real Estate has set a new high in median sales prices for both the 2nd quarter and June sales. Los Altos and Menlo Park are not far behind and are likely to set new records soon, as well. The local high tech economy is booming and housing is benefiting from the increased demand and limited inventory of homes to sell. Of course, a meltdown in the national and world markets would likely dampen buyers’ enthusiasm, but that is what it would likely take to turn around the current buying frenzy.
Bottom line: if you’re thinking of selling, now’s the time!
Q1 2011 Market Update
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 ?
