Why Is It A “Hot” Market?
It’s HOT simply because the supply of homes for sale is low and demand for homes is high. Why is demand high? Because jobs are plentiful, interest rates are low, and (local) consumer confidence is bullish. Why is supply low? That’s more complicated.
State and Federal tax policies reward those who remain in their homes. This, coupled with a lack of viable options for seniors, is generating a whole new “aging-in-place” industry: In-home care, “Forever Home” remodeling, health monitoring systems, etc.
In addition, home owners who are contemplating selling their home are not likely to do so when prices are rising.
How long will this dynamic last? It will continue until the next economic shock occurs. In 2008 it was the banking collapse. In 2000 it was the NASDAQ bubble bursting. In 1990 it was the cutback in defense spending.
What will it be this time? We don’t know. What does your crystal ball say?
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of July for Palo Alto, Los Altos, Los Altos Hills, Menlo Park and Mountain View. 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.