Jeff Stricker & Steve Tenbroeck
Alain Pinel
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Welcome

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.

2012 Mid-Year Report: Prices Are Rising, Owners Are Staying Put

The first half of 2012 was a terrific time for home owners in our area!

The supply of homes for sale was low while demand was high. Supply is primarily driven by consumer confidence. Since most owners in our area do not “need” to sell, they tend to want to sell when they think the value of their home may decline. Conversely, if they believe that values are rising, they tend to put off selling. This is what is occurring now. Prices are rising. Owners are staying put.

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Topics: Commentary, First Half Review      Comments Off

May 2012 Market Snapshot – Surge in New Listings!

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POST FACEBOOK IPO; SPRING JUMP IN INVENTORY

The number of new listings of homes for sale jumped in May. Many sellers had been waiting for the highly publicized launch of Facebook’s IPO to put their homes on the market. Fortunately for those sellers, the standing pool of buyers was deep enough to keep prices high in spite of the surge in new inventory. How long the number of buyers will keep up with the bump in supply is anyone’s guess. We believe it will have mostly to do with consumer confidence, as always. However, if we were planning to sell within the next year, we’d would do it sooner rather than later. Read the rest of this entry »

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Topics: Commentary, Market Trends, Monthly Snapshots      Comments Off

April 2012 Market Snapshot – Fastest Selling Month in Over 10 Years!

April is fastest selling month in over 10 years!

Palo Alto, Los Altos, and Menlo Park (west of Bay Rd) continue to be extremely hot markets. This is apparent in the average percentage of list price received by sellers. Sellers received 108.6% of list price in Palo Alto, on average, in April!  Buyers are anxious to get into a home in the better areas before they are “priced out”.  Most home owners, on the other hand, are in no hurry to sell as they watch their estimated values climb.

The market typically slows for the summer months beginning toward the end of May. Demand normally picks back up in August. And, as long as local consumer confidence remains positive, that’s what we expect will occur this year.

In the charts below, you’ll find 10 years of data for market activity and median sales price in April in Palo Alto, Los Alto, Los Altos Hills and Menlo Park.

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.

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Topics: Commentary, Monthly Snapshots      Comments Off

March Snapshot – “Over Asking” is the New Normal

Spring Fever is Here

In the charts below, you’ll find 10 years of data for market activity and median sales price in March in Palo Alto and Los Altos.

The big takeaways are:

  • Over Asking is the new normal.  Average list price received in Los Altos was 102.7%.  Menlo Park was 101.2%. Palo Alto continues to defy gravity at 108.8%.
  • 14 Days – that’s the average days it took for a home to sell in Palo Alto. The lowest since we started tracking the data over ten years ago.  Menlo Park was 19 Days — a whopping 33 days fewer than March 2011.
  • Fewer new listings in Palo Alto – less desirable properties are also getting snatched up.
  • More new listings in Los Altos – it’s becoming a great alternative to Palo Alto for many buyers.

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.

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Topics: Commentary, Market Trends, Monthly Snapshots      Comments Off

Q1 2012 Report – The Facebook Effect – Perception is Reality

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!

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.

See charts below comparing the 2012 and 2011 for closed sales, new listings, average days on the market, median sales price, average percentage of list price received and price per square foot. If you have any questions or would like to discuss your specific neighborhood and real estate needs, don’t hesitate to shoot us an email or call.
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Topics: Market Trends, Quarterly Updates      Comments Off