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.Share
The Peninsula real estate market continues to be hot!
Inventories of homes for sale are significantly lower than last year. Competition for the best properties in all price ranges remained strong with over-bidding particularly common in Palo Alto (note the average percentage of list price received was over 100% again in September).Share
The local real estate market continues to be hot!
Inventories of homes for sale continued to decline in August while competition for the best properties in all price ranges increased fiercely. Over-bidding, all-cash offers, as-is terms, no contingencies — these were all commonplace terms in many of the sales transactions over the past several months.
Local consumer confidence is finally beginning to waver, based on the non-stop negative economic news both nationally and internationally. This has begun to adversely affect demand for homes that have “issues,” but for most homes it remains a “Seller’s Market.”
Palo Alto, Los Altos, Los Altos Hills and Menlo Park
July statistics are going to require more explanation and interpretation than usual. The decline in sales volume in our area is a result of a shortage of inventory, especially in the mid- and upper-range of the market. It is certainly not due to lack of demand.
Another statistic that can be easily misinterpreted is Days On Market (DOM). As the market heats up – as it is now – and inventory declines, homes that have been sitting begin to sell, increasing the average days on market. It is definitely not taking longer for the typical home to sell in the current market.
Lastly, the median sales price decline is a result of the shortage of inventory of homes to sell in addition to the increasing number of “quiet sales”. “Quiet sales” refers to homes being sold through local agent networks and not listed or recorded on the Multiple Listing Service, usually higher priced properties. These two factors are causing the reported median sales price to decline. Homes in our area are most certainly not declining in value at this time.
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!
- Los Altos median price jump over last year
- Palo Alto and Menlo Park remain strong
- Los Altos Hills continues to be soft, home on the market for over 100 days
See the charts below for May median sales price for the last ten years in your area. Average number of days on the market appear under the years.