Whether you are a first time buyer or seller, or have been through multiple transactions, you might be surprised by how quickly the real estate market changes in Los Altos, Palo Alto and surrounding communities. You need hard-hitting historical data, current market analysis, and insider experience to stay informed and succeed in these real estate markets.
As a service to their clients, Jeff Stricker and Steve TenBroeck of Alain Pinel Realtors provide regular market analysis and commentary. You are invited to read the entries below, add your comments, ask questions or contact them directly.
Be cautious what you extrapolate to your neighborhood market from national real estate media coverage.
Last week the press trumpeted that median home values were up everywhere indicating the housing market was in recovery mode and on solid footing. This week? The number of existing home sales were down nationally by a record amount bringing last week’s cheery news into doubt. How can this be?
Lack of thought and analysis are the reasons the press is so often off the market with their real estate articles. And government meddling is causing the current phenomenon of higher prices and lower number of sales. Fed driven record-low interest rates on larger loans are allowing more higher-priced homes to sell this year. Median home prices go up (not necessarily home values). Last year high-balance loans disappeared for awhile limiting high-end homes sales, and thereby causing median home prices to drop (not necessarily home values).
Read the rest of this entry »
Days on Market Down. Median Prices Up.
Looking back 10 years, the charts in the slide show below show median sales price, average days on market, and average % asking price received for the communities of Atherton, Hillsborough, Woodside, Portola Valley, Menlo Park, Palo Alto, Los Altos, Los Altos Hills, Mountain View, Sunnyvale, Cupertino and Saratoga. Read the rest of this entry »
Unless you’ve been on vacation or have sworn off news for awhile, you must have seen the recent headlines about home values.
It’s that time of the quarter when National Association of Realtors, Zillow.com and other research firms release home sales data. Especially in a slow news month, the press eagerly feasts on the news. But be very cautious believing their analysis and trends. Often, the reporters get it wrong. We find they tend to generalize trends, gloss over local nuances and draw the wrong conclusions.
Today the SJ Mercury reported today in the business section that median home prices jumped 26% year over year, the nation’s second-biggest percentage. The article goes on to discuss how “prices” are up, and lists the “Metro Home Prices which had the biggest yearly price gains”. Sounds like good times are here again for all homeowners! Or does it mean that?
Reading further into the article Karl Lee, President of the Santa Clara County Association of Realtors points out that “Silicon Valley has seen a significant increase in sales of homes worth $1 million or more”. Lawrence Yun, chief economist of the National Association of Realtors, adds that recorded (median) home prices “…were significantly depressed last year because of a large percentage of distressed homes sold at discount”.
Prices are up – and days on the market are down!
In Palo Alto, Los Altos and surrounding communities, the residential real estate market continued to recover in the 2nd quarter of ’10. Supply and demand continued to move back in favor of sellers with multiple offers common and prices rising.
See charts, commentary and analysis on the next page.