Will This Hot Market Continue?
As you review the graphs below, you will see that you’d have to go back to 2005 or 2000 to find a market as low in supply of homes for sale as there are in the current market. The median sales price reflects what is being sold rather than how much homes are appreciating in value. A better metric is the average percentage of list price received by sellers. The current overbidding is as high, or higher, than it was in ’05 and ’00.
This market will continue as it is until the next financial shock causes homeowners and buyers to believe that home prices will fall. Meanwhile, prices will continue to rise as demand for homes is far greater than the supply.
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of January 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.