January 2013 | Real Estate Supply – Demand Mania!
In January 2013 new records were set for both highest median sales prices and lowest inventories of homes for sale.
This month we’ve focused on the market activity Palo Alto, Los Altos, Mountain View, and Sunnyvale. Below are 15-year graphs of activity and sales prices for the month of January. You can see why there are so many offers per property and why sales prices are rising so rapidly. The numbers of homes for sale is extremely low – probably the lowest since the 1950’s. You will have to look back to 2000 and 2005 to see similar high-demand, low supply ratios.
What is not recorded, unfortunately, are the numbers of offers per sale. We have been active in this housing market since the 1980’s and we’ve never encountered the number of offers we are seeing currently. For example, there was a sale in west Sunnyvale in late January of an entry level single family home that was listed at $925k. They received 62 offers! This many offers per property is an extremely rare event, of course, and the list price was undoubtedly too low, but still…unbelievable demand.
So, if you’re thinking of selling, what are you waiting for? And if you’re hoping to buy, fasten your seat belt and make sure your agent has a good strategy for success!