2012 Mid-Year Report: Prices Are Rising, Owners Are Staying Put
The first half of 2012 was a terrific time for home owners in our area!
The supply of homes for sale was low while demand was high. Supply is primarily driven by consumer confidence. Since most owners in our area do not “need” to sell, they tend to want to sell when they think the value of their home may decline. Conversely, if they believe that values are rising, they tend to put off selling. This is what is occurring now. Prices are rising. Owners are staying put.
Demand is driven by employment and affordability. Interest rates are at a record low, which somewhat offsets the high sales prices in our area. Employment numbers are currently very strong. According to the US Bureau of Labor Statistics, Los Altos and Palo Alto have a mere 4% unemployment rate; Menlo Park’s is just 5.5%; and Mountain View’s is only 6%. However, the crash of ’08 is still very fresh in buyer’s minds. That causes buyers to be nervous and therefore picky regarding which homes they pursue. Homes with the fewest negative issues have received the most attention with fierce over-bidding, including all-cash, as-is, non-contingent offers. If you’re thinking of selling, now’s the time!
You can’t find this level of historical data all in one place anywhere else, so if you have any questions or wish to get more info about your community, don’t hesitate to contact us.