South Peninsula Real Estate: Last to Decline in Value – First to Rise
Home values on the South Peninsula hold up best in economic downturns and are the first to recover. Desirability and a limited supply of homes for sale are two of many reasons. As 20+ year Realtor veterans in communities from Menlo Park through Los Altos (including Palo Alto, Los Altos Hills, Atherton, Portola Valley, and Mountain View), we know this to be true. This proved to be the case in the downturns of 1980-84, 1989-93, and 2000-03. While the average home in the Bay Area is down 40% from 2007, we are just now beginning to see prices decline, locally. And while homes in our area have held up well in value, so far, we are not immune to the current economic downturn. We expect local home values to fall at least 10% next year, on average, due to local layoffs and a higher number of homes for sale. Homes with “issues” (traffic noise, bad floor plans, etc.) will fall the most in value. Homes without issues will fall less. Our current advice to sellers: If you are planning on selling next year do so as early as possible!
Jeff Stricker & Steve TenBroeck