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January 2014 Real Estate Update

Happy New Year!

Housing Outlook

I feel very optimistic about the potential for a strong housing marketin 2014. Here are 4 reasons why:

  1. A robust local economy. Silicon Valley, the Peninsula, and San Francisco have one of the strongest economies in the country. Dice.com reports that 55% more employers, a record high, areready to hire a large number of techies – who will provide a better-capitalized pool of buyers this year.
  2. Supply and demand. Demand is extremely high and supply is historically low. This is what pushed prices up and created so many multiple offers and prices exceeding list price. Until supply increases, this isn’t going to change.
  3. Interest rates. Rates remain historically low but make no mistake about it, they are moving up. This is a clear wakeup call for buyers who have been on the sidelines – and anothe rreason to expect a robust year.
  4. Increasing costs of renting. Rents are skyrocketing, which makes buying a home a better financial proposition. My sense is that buyer demand will only increase as renters see their personal economy improving with a better job market and higher salaries.

2013 Housing Comparisons

As we start the new year, it’s a great time to reflect back on the year that just closed. And what a year it was!

Portola Valley

  • Sales in Portola Valley were up 29% from 63 sales in 2012 to 81 in 2013
  • Average days on market dramatically improved from 67 to just 49 days last year
  • Average price increased 16% to $2,796,101
  • Median price of $2,250,000 held fairly steady
  • Just 8 homes currently for sale in all of Portola Valley

My thorough annual report for the Portola Valley real estate market is in the works now and will be out soon with a complete look at each neighborhood. Keep your eye out for it!

Woodside

  • Sales in Woodside were up 28.5% from 84 sales in 2012 to 108 sales in 2013
  • Average days on market improved from 86 to just 65 dayslast year
  • Average price increased 26.8% to $2,607,625
  • Median price of $2,052,500 was up 21.7%

Atherton

  • Sales in Atherton were up 26.5% from 83 sales in 2012 to 105 sales in 2013
  • Average days on market owent up a little from 62 to just 66 with 40% of the homes selling in two weeks or less
  • Average price increased 2% to $4,080,739
  • Median price of $3,575,000 was up 11.7%
  • 24 homes currently for sale in all of Atherton

Menlo Park

  • Due to low inventory, sales in Menlo Park were down 13.4% from 394 sales in 2012 to 341 sales in 2013
  • Average days on market improved from 29 to just 24 last year
  • Average price increased 17% to $1,701,076
  • Median price of $1,510,000 was up 13.9%
  • 20 homes for sale in Menlo Park

Palo Alto

  • Due to low inventory, sales in Palo Alto were down 15.4% from 480 sales in 2012 to 406 sales in 2013
  • Average days on market improved from 23 to just 17 last year
  • Average price increased 17.7% to $2,362,425
  • Median price of $2,100,000 was up 21.6%
  • 14 homes currently on the market in Palo Alto

Los Altos and Los Altos Hills

  • Due to low inventory, sales in Los Altos and Los Altos Hills were down 9% from 480 in 2012 to 437 in 2013
  • Average days on market improved from 43 to just 33 last year
  • Average price increased 9% to $2,393,255
  • Median price of $2,250,000 was up16.6%
  • Just 28 homes for sale

I’ve said it before, but it’s worth repeating – it’s an excellent opportunity for sellers in this market. There are just 8 homes currently for sale in all of Portola Valley. If you are considering selling, please let me know if I can help you in any way or answer any questions you may have. Now is definitely the time to start planning and getting your home ready to sell in the new year – and the earlier your home comes on the market the better, to beat the typical spring competition.

Around Town

Portola Valley

Master Sinfonia Chamber Orchestra was established in 1965 to provide classical music of a high caliber to the communities of the San Francisco Peninsula. We are fortunate to have this coming to Valley Presbyterian Church in Portola Valley on January 25. Because of my continued support of Master Sinfonia, if you mention my name at the door you will be admitted for free. Hope to see you there!

Woodside

Woodside Backyard Habitat Program was designed to recognize residents who have made an effort to preserve or re-create the natural spaces that allow the native flora and fauna to thrive. If you are interested in receiving this award, nominating a neighbor, or looking for more information on creating a backyard habitat.

Atherton and Menlo Park

The United Stated Geological Service (USGS) hosts amonthly evening lecture series that is free to the public. The January lecture topic is “The Yellowstone Volcano: Past, Present and Future – Monitoring th esleeping giant beneath Yellowstone National Park” on Thursday, January 23,at 7:00 pm.

Palo Alto

Baylands Bioblitz Saturday, January 25, 9:00 AM - 1:30 PM You bring your smart phone and tons of enthusiasm. They rally som eexperts and folks who know the Baylands. Together you’ll make some science! This is the first grassroots bioblitz in Palo Alto, an intensive one-day study of biodiversity in a specific location, bringing scientists and volunteer citizen-scientists together.

Los Altos and Los Altos Hills

Project Los Altos: SFMOMA in Silicon Valley. SFMOMA has brought national and international artists to Los Altos, in both indoor and outdoor locations, now through March 02, 2014.

Ginny Kavanaugh

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