Foreclosures in Los Altos and Palo Alto?
Los Altos and Palo Alto real estate markets have been mostly free so far of the foreclosure problems plaguing other areas. There is the occasional foreclosure, but not enough to affect the market.
Why? It’s basic supply and demand. The supply had been 20-25% below normal for the last 3 years per MLS listings stats. We believe that a big part of why this occurred is because homeowners in Los Altos and Palo Alto “gave up” on selling in 2009 early in the year when the economic news was so dismal.
Also demand rebounded in the second half of 2009 from the beginning of the year. The fourth quarter 2009 was generally twice as active as any other quarter during the year. The Silicon Valley economy stabilized causing a rebound in local consumer confidence causing an increase in home sales. Homeowners having financial problems have simply been able to sell.
Will foreclosures increase significantly in Los Altos and Palo Alto during 2010? It depends on the local economy. Watch local job reports in the Mercury News as a good indicator as to where the market- and foreclosures- will head.