Second Quarter 2017 Market Trends
BULL MARKET CONTINUES TO RAGE!
The continuing story of 2017 is lower-than-normal inventory of homes for sale, coupled with persistent strong demand. Here are several additional observations for your consideration:
1. The real estate market started strong in 2017, and gained strength during the first half of 2017. Demand remains strong.
2. Low numbers of homes for sale were prevalent during the first half. This continued in May and June when inventory usually begins to rise. Low inventory will likely continue until 2018.
3. Home appreciation was strong during the first half of 2017. Since the market cycle began in 2008, homes have appreciated about 90%.
Currently the market is almost 9 years into the typical 7-10 year market cycle that began Fall of 2008. The largest gains typically occur the last 24 months of the cycle during the “melt up” phase, which I believe is currently happening. The market will likely remain strong for the remainder of 2017, barring budget/debt ceiling problems in August.
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.