2010 REVIEW & 2011 MARKET FORECAST

2011 Local Real Estate Market Forecast
All market factors point to a sharp uptick occurring in local prices during the first half of 2011.  Last year, the number of sales, median sales prices, and percentage of list price received were up in almost all areas. In addition, it took less time for a home to sell in most areas. All of these factors are good leading indicators that buyer competition for homes will continue to be strong (barring a major economic shock of some kind) and sales prices will continue to rise.


SINGLE FAMILY HOMES
AnchorSouth and Mid-Peninsula Market Snapshot
?
2009 vs. 2010 ?

2010 vs 2009 Home Sales Palo Alto and Los Altos
An interesting side note to the increase in median sales prices during 2010 (see below)  – we observed that the quality and location of a home purchased in a given area was usually not nearly as good (i.e. not as valuable) as one that could have been bought for the same price in ’09.  Actual home price appreciation was likely several percentage points higher during 2010 than the increase in median sales price reflects.  We believe this will also be true in 2011.

SINGLE FAMILY HOMES
AnchorSouth and Mid-Peninsula Market Snapshot
?
2009 vs. 2010 ?

2010 vs 2009 Annual Review


All Real Estate is Local
Fortunately, our local real estate markets are relatively strong compared to the rest of the country.   One must be cautious, therefore, when reading media commentary on “the real estate market”.  A recent Investopedia article 10 Reasons Real Estate Could Rebound in 2011 wisely points out, “Following the national real estate news can be valuable, but keeping up on local market conditions can be even more important.”
If you would like an in-depth discussion of trends in your particular town or neighborhood, we would be glad to provide it.
Simply call Jeff at 650/823-8057 or Steve at 650/450-0160, or email: JeffAndSteve@apr.com

2011 Local Real Estate Market Forecast
All market factors point to a sharp uptick occurring in local prices during the first half of 2011.  Last year, the number of sales, median sales prices, and percentage of list price received were up in almost all areas.  In addition, it took less time for a home to sell in most areas.  All of these factors are good leading indicators that buyer competition for homes will continue to be strong (barring a major economic shock of some kind) and sales prices will continue to rise.

An interesting side note to the increase in median sales prices during 2010 (see below) is that the quality and location of a home purchased in a given area was usually not nearly as good (i.e. not as valuable) as one that could have been bought for the same price in ’09.  Actual home price appreciation was likely several percentage points higher during 2010 than the increase in median sales price reflects. We believe this will also be true in 2011.