The real estate market in Northern California is seeing varying activity depending on the counties, cities, neighborhoods and homes - a strong indicator of a shifting dynamic. Competitively-priced homes in any range are expected to sell steadily and swiftly, and properties under $750K are not sitting on the market for long. The sub-$750K homes are also seeing tighter inventories than higher-priced homes.
With additional inventory expected to appear over the coming days and weeks of summer, buyers who have been waiting for new listings will be competing for homes that are priced right and primed to sell. Sellers testing the market with listing prices above the competitive range will see their homes sitting longer, and the perception among buyers will be unfavorable. It’s critical even in this market to list at the right price for the county, city, neighborhood and home. Now more than ever, sellers and their agents need to be mindful in determining a listing price.
Hot markets like Palo Alto will continue to experience more buyers competing for less properties, which will drive up closing prices significantly in desirable communities. See below for what was happening in our local markets since the last real estate update.
I’ve said it before, but it’s worth repeating – even in this strong seller’s market, to capitalize on the best possible price, it takes expert property preparation, marketing, and negotiations. I know exactly what it takes to get you the best results. Please contact me any time to talk about your home, or just catch up on the market.
Portola Valley
The number of new listings doubled in the month of May compared to April. The increase comes as a welcome relief for buyers. Portola Valley currently has 15 homes on the market, the highest number yet this year. Sales were strong in May and most notable was the price range, with most homes selling between $3 and $4 million (in previous months, the majority of the sales were less than $3 million). Because of the increase in sales price, the median price jumped significantly – up 37% compared to May of last year, the highest median price by far this year at $3,547,500. Also notable, and a continuing indication of buyer demand, were the 3 homes that sold for more than list price in May. Year-to-date, 17 of the 28 sales, or 61%, sold for more than list price. Buyers want to live in Portola Valley.
Woodside
The number of sales reached the highest level this year with 6 in May (previous monthly high was 3). Demand remained strong with all but 1 home selling for more than list price, including those in the highest price range. May’s median price was $2,325,000, a dip from the 2016 median price of $2,815,000. As of June 15, the median price is $1,852,750. Given the limited number of sales overall, I do not find these numbers to reflect overall market trends in Woodside.
Atherton
Sales reached a record high in May with 10 homes selling. All sales were for list price or less, a statistic we have not seen for quite some time as we have gotten used to over list price sales. The highest end of the market was strong with 2 sales in excess of $12 million. In May, the median price for a home was $3,330,000. The median price for 2016 was $6,002,500 and as of June 15, the median price is $4,600,000. I attribute this decline to the few number of sales this year, most of which have been in the lower price range – only 5 sales this year have been for more than $10 million.
Menlo Park
On the heels of the 34 sales in April, May continued strong with 31 sales. Demand remained incredibly high with all but 8 homes selling for more than list price including homes in the higher price ranges. In May, the median price declined to $2,130,000, from $2,700,000 in April. As of June 15, the year-to- date median price is $2,135,000 –a slight increase over 2016 when it was $2,127,500. With high demand and low inventory low, I expect prices to continue increasing this year.
Palo Alto
Sales reached a record high in May with 41 homes selling, an increase from the previous high of 35 sold in April. Demand remained incredibly strong with all but 8 homes selling for more than list price, including those in the higher price ranges. May’s median price reached $3,113,000, just short of the record set in January of $3,225,000. Both represent a significant uptick from the 2016 median price of $2,550,000. As of June 15, the median price is $2,790,000 – a 9% increase in less than 6 months.
Los Altos
Los Altos Hills
Sales reached a record high in May with 48 homes selling in the combined Los Altos/Los Altos Hills area. Demand was strong with all but 18 homes selling for more than list price – and this includes homes in the higher price ranges. In May, the median price for a home in Los Altos was $2,785,000. The median price for 2016 was $2,710,000 and as of June 15, the median price is $2,906,000 – a 7% increase in less than 6 months. In Los Altos Hills, the median price in May was $5,725,000. The median price for 2016 was $3,862,500 and as of June 15, the median price is $4,015,000 – a 4% increase in less than 6 months.