July Snapshot – Median Sales Price and Market Activity 2011
Palo Alto, Los Altos, Los Altos Hills and Menlo Park
July statistics are going to require more explanation and interpretation than usual. The decline in sales volume in our area is a result of a shortage of inventory, especially in the mid- and upper-range of the market. It is certainly not due to lack of demand.
Another statistic that can be easily misinterpreted is Days On Market (DOM). As the market heats up – as it is now – and inventory declines, homes that have been sitting begin to sell, increasing the average days on market. It is definitely not taking longer for the typical home to sell in the current market.
Lastly, the median sales price decline is a result of the shortage of inventory of homes to sell in addition to the increasing number of “quiet sales”. “Quiet sales” refers to homes being sold through local agent networks and not listed or recorded on the Multiple Listing Service, usually higher priced properties. These two factors are causing the reported median sales price to decline. Homes in our area are most certainly not declining in value at this time.