May 2010 Monthly Snapshot
May Trending: As in April, the number of homes selling with multiple offers (over asking price) continued to increase. All-cash offers continued to be common. Buyers are still picky, however, and afraid of over-paying. They generally pursued homes with the fewest defects and least amount of work needed to be done (unless they believed they were receiving a significant discount for those perceived deficiencies).
Bottom line: The real estate market is continuing to heat up as Silicon Valley begins to recover from the recession. Sellers in Palo Alto in May received an average of ~102% of asking price. Other communities were not far behind (except for Los Altos Hills where it is still clearly a Buyer’s Market).
The charts below show the number of closed sales in the month of May of each year (‘01 through ’10) including the number of homes for sale on the last day of the month. At the bottom of each chart, you will see the number of months it would take for the homes to sell at that month’s rate of sales, plus the average percentage of list price received by sellers in May of each year.
* Months of inventory on the market
** Average percent of price received