Robust Fall Market in Los Altos, Palo Alto and Surrounding Towns
The election results are in and so are the Q3 2010 Single Family Home Sales stats. Take a look at the charts below for the communities of the South and Mid-San Francisco Peninsula. All indicators are up: closed sales, inventory, new listings and sales price. Days-on-market is down which means that the best properties are moving fast.
More analysis and commentary is included below.
SINGLE FAMILY HOMES
South and Mid-Peninsula Market Snapshot
? Q3-2010 vs. Q3-2010 ?
THIRD QUARTER SUMMARY
The San Francisco Peninsula & Silicon Valley are experiencing a robust fall home sale market! Although it is relatively flat as compared to the third quart of last year, one must recall that most of the sales in ‘09 occurred in the second half of the year.
In each market area the lower half of the price range is experiencing tremendous demand, multiple offers, and over-bidding (provided that home is priced accurately). The upper half of the price range is finally beginning to see some movement as well. Record low interest rates and increasing (local) consumer confidence should keep this trend progressing into 2011.
AVERAGE AND MEDIAN PRICE CAN BE MISLEADING
We find the best indicator of a rising or falling market to be the Percentage of List Price Received by the seller. Too often average sales prices reflect the price level of homes that happen to be selling at the time – not whether or not they are rising or falling in value. When the average percentage of list price received by sellers approaches or exceeds 100%, you can be sure that there is upward pressure on prices. Having been severely burned by an overheated real estate market in the last few years, buyers – while very motivated – are extremely picky and will demand discounts on properties with notable problems or deficiencies.
On average, both the median sales prices and percentage of list price received by sellers was up in Q3 – 2010 over Q3 – 2009. Fortunately, San Francisco & Silicon Valley are doing relatively well, especially compared to the rest of the country, as recently reported by The Registry, the bay area real estate journal.
For More Information
All of the towns above have diverse neighborhoods and prices. When we only look at averages they can tell us something, but not too much. If you would like an in-depth discussion of trends in your particular town or neighborhood, don’t hessitate to contact us. We live and breathe this information each day and look forward to sharing our insights and knowledge with you. Simply call Jeff at 650/823-8057 or Steve at: 650/450-0160 or email us: JeffAndSteve@apr.com.