January Market Trends
It’s All About the Inventory
The most significant factor that determines the strength of local real estate markets is the number of homes for sale. In strong markets, there are very few homes for sale, and in weak markets there are many. The level of homes for sale can fluctuate by as much as a factor of 10.
Currently, inventory levels are low in most markets, but the year-over-year trend in the number of homes for sale is up significantly. Some of the other sales statistics have weakened also. This causes me some concern as to the strength and direction of local real estate markets. However, it is too early in the year to conclude that the market is changing. Watch for my update on the strength of the markets during the first week of March.
Hope your 2017 is off to a fabulous start!
In the charts below, you’ll find 15 years of data for annual market activity and median sales price 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 me.