May 2013 Market Snapshot: What Constitutes A “Hot” Real Estate Market?
A hot market is simply one where demand is greater than the supply. In each real estate cycle (between recessions) the number of homes for sale has been decreasing in all of the high demand areas.
Compare the current number of homes for sale in Palo Alto, for example, to the number of homes for sale during the previous market peaks of 2000 and 2007. On May 31 of 2000 there were 94 homes for sale. On May 31 of 2007 there were 57 homes for sale. On May 31 of 2013 there were just 35 homes for sale.
Owners in our area have fewer reasons and less motivation to sell than ever before. We do not see this trend changing anytime soon. The supply of homes for sale increases sharply during recessions – but during the rest of the market cycle it is very hot our area!
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of April for Palo Alto, Los Altos, Los Altos Hills, Menlo Park and Mountain View. You can’t find this level of historical data all in one place anywhere else, so if you have any questions or wish to get more info about your community, don’t hesitate to contact us.