Archive for the 'Quarterly Updates' Category
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.
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.
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!Share
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 ?
The economic recovery has certainly gained traction on the San Francisco Peninsula & Silicon Valley! The Conference Board reported a decline in March, “The Conference Board Consumer Confidence Index®, which had increased in February, declined in March. The Index now stands at 63.4 (1985=100), down from 72.0 in February”, but broken down by region, consumer confidence in the Western U.S. was up significantly while confidence was down significantly in the eastern U.S.