June Market Trends
The hot spring market that commenced in February for local real estate cooled during April, May, and June. An increase in available homes for sale, combined with less buyer urgency, resulted in fewer homes receiving multiple offers during June. Also note that the year-over-year upward trend of median sales price ended during the month. Issues such as a busy street or poor floor plan became more important to buyers, influencing them to wait for the next home without a significant issue. Also, setting an appropriate asking price is now critical to attracting buyer interest.
Local real estate agents continue to deliberate whether the market has fundamentally changed. It is too early in the summer to know if a fundamental change has occurred, however I expect the market will remain strong (but not overheated) through the remainder of this year. Home values typically double in a market cycle, and that has not quite happened yet. The market has room to go up further before correcting.
In the charts below, you’ll find 15 years of data for market activity and median sales price for the month of June for Los Altos, Palo Alto, 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 me.