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.

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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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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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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February 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.

It’s Hockey Season!  Prices continue to go sky high in Palo Alto and the surrounding communities.  And the inventory of homes on the market continues to be as low as the rainfall this winter.  This is making for even more multiple, over-the-asking-price, offers.

In the charts below, you’ll find 10 years of data for market activity and sales price in February in Palo Alto, Los Altos, Los Altos Hills and Menlo Park.  We also compiled information about Condos and Townhomes in Palo Alto this month.  Given that the average sales price of a single family home in Palo Alto is inching toward $2M, attached homes are becoming an attractive and affordable alternative. 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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January 2012 – Real Estate Market Snapshot

January 2012 Market Trends
IPO’s are in the news! LinkedIn employees and investors are leading the way in the early days of 2012. Palo Alto is ground zero for much of the new wealth in the area. 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.
Inventories in all areas, locally, were down this year. This is consistent with rising (local) consumer confidence. When owners believe the value of their home is rising, they are less likely to want to sell. 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.

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.

Read the rest of this entry »

Topics: Commentary, Market Trends, Monthly Snapshots      Comments Off