Skip to Content Area

December 2015 Real Estate Update

Looking back, 2015 turned out to be another strong year overall for our local real estate markets, especially for home sellers.

The Bay Area housing market experienced good appreciation in home prices in many areas, although some home values did come back to earth a bit as the year wore on. The median sales price in the Bay Area through October reached $710,000, up 9 percent in 2015 from last year, according to local MLS data analyzed by Coldwell Banker.

MEDIAN SALES PRICE COMPARISON


Year-to-date 2015 Year-to-date 2014 Percent change
Portola Valley $2,640,000 $2,437,500 8.31% Up arrow green
Woodside $2,537,500 $2,150,000 18.02% Up arrow green
Atherton $5,750,000 $4,200,000 36.9% Up arrow green
Menlo Park $1,930,000 $1,640,000 17.68% Up arrow green
Palo Alto $2,500,000 $2,148,100 16.38 Up arrow green
Los Altos $2,628,000 $2,300,00 14.26% Up arrow green
Los Altos Hills $3,555,000 $3,095,000 14.86% Up arrow green

 

Strong buyer demand, a vibrant local economy and a continuing decline in the inventory of homes on the market combined to make 2015 another seller's market here in the Bay Area. Healthy job growth, especially in the tech sector, biotech industry, and financial services, fueled demand for homes – everything from entry-level properties to multi-million-dollar estates.

Another factor that helped bolster the housing market was a continuation of attractive mortgage interest rates, which remained near historic lows this year. Although the Federal Reserve is considering a rate hike this month, the California Association of REALTORS® (CAR®) believes that any boost in rates will be relatively small and increase gradually in the coming year.

One of the biggest challenges to the housing market in 2015 was that there were just not enough listings to meet buyer demand. The number of homes for sale in the Bay Area is down 16 percent from November last year, when inventory was already lower than normal.

HOUSING INVENTORY: NUMBER OF NEW LISTINGS

Year-to-date 2015 Year-to-date 2014 Percent change
Portola Valley 79 93 -15.05% Down arrow red
Woodside 137 157 -12.74% Down arrow red
Atherton 109 117 -6.84% Down arrow red
Menlo Park 442 489 -9.61% Down arrow red
Palo Alto 525 541 -2.96 Down arrow red
Los Altos 384 353 8.78% Up arrow green
Los Altos Hills 157 124 26.61% Up arrow green

 

The shortage of listings led to multiple offers and sales over asking price on some properties this year. The limited inventory may also been a contributing factor in keeping a lid on home sales overall in 2015 with sales in the Bay Area up just 2 percent so far this year compared to last year at this time.

SALES COMPARISON: NUMBER OF SALES

Year-to-date 2015 Year-to-date 2014 Percent change
Portola Valley 55 81 -32.1% Down arrow red
Woodside 86 96 -10.42% Down arrow red
Atherton 73 94 -22.34% Down arrow red
Menlo Park 359 417 -13.91% Down arrow red
Palo Alto 385 449 -14.25% Down arrow red
Los Altos 332 310 7.1% Up arrow green
Los Altos Hills 94 84 11.9% Up arrow green

 

CAR® Vice President and Chief Economist Leslie Appleton-Young said several key factors came together to create a healthy housing market in 2015, and she expects that will continue in the coming year. "The foundation for California's housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth," she noted.

If you are considering buying or selling in 2016, let’s talk about next steps now. Whether you are preparing to come on the market or searching for the perfect place to call home, the earlier you start the better -  to beat the spring competition.

Happy Holidays to you and your family! I look forward to catching up with you in 2016.

Ginny Kavanaugh

Top Agent
Ginny is a top producing agent with more than 25 years of experience. She ranks amongst the top 1%...

Contact

This field is required.
This field is required.
Interested in Selling My Home
Interested in Buying a Home
$
$
Send
Reset Form

Phone

John Kavanaugh: 415.377.2924 Joe Kavanaugh: 650.400.5312 Ginny Kavanaugh: 650.400.8076