Market Trends

Whether you are a first time buyer or seller, or have been through multiple transactions, you might be surprised by how quickly the real estate market changes in Los Altos, Palo Alto and surrounding communities. You need comprehensive historical data, current market analysis, and extensive insight to stay informed and succeed in these real estate markets.
As a service to his clients, Jeff Stricker provides his personal market analysis and commentary on local real estate trends.

  • February Market Trends March 9, 2018 by jstricker

    Did the Stock Market Correction Impact Local Real Estate Markets?

    Everyone knew the recent 10% correction in the stock market was coming. It was long overdue, but most stock investors took it in stride. Yet some investors reacted as if it was the beginning of the end. Local real estate markets reacted similarly. Some prospective buyers in the market, especially high-end or investor buyers, immediately put their home search on hold. However, most home buyers took the stock market dip in stride, and continued forward with their quest to buy a home. Not only did strong local real estate markets remain hot in February, prices jumped significantly as the spring market moved into high gear.

    I have written that, based on history, local real estate markets are expected to be in the late stages of the 10-year real estate market cycle. The recent stock market correction will likely extend the current hot market phase of the cycle until after the fall elections. Prices in both the stock and real estate markets will “melt up” and hit their cyclical peak before the next price correction begins.  For a no-obligation consultation on current market values and key sales factors in your neighborhood, please call or email me.  I look forward to helping you!


    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.


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  • Jeff’s 2017 Annual Market Trends January 22, 2018 by jstricker

    The 2017 Peninsula real estate markets had one of the strongest years on record. The number of homes sold were up in most communities over 2016, while median prices were up double digits in many markets. A chronic shortage of homes for sale, coupled with strong buyer demand resulting from strong tech hiring, fueled the run up in home values.

    Update on the Market Cycle

    Market cycles dating back to 1980 show that the market typically appreciates for 5-6 years after prices bottom out during a cycle. Since prices bottomed in most areas at the end of 2009, I was early in predicting the market would change in 2015 or 2016. With the help of the federal government driving down interest rates, strong local job growth, and the “Trump bump” rise in the stock market, home prices have risen far higher than I could imagine.

    2018 Market Forecast

    Now that prices have doubled since 2009, where will the market go from here?  No one knows how long the “melt up” in local real estate prices will run, but here are the indicators I watch:

    1. Duration– entering 10th year of the typical 7-10 year cycle
    2. Values– are more than twice the low prices of 2009; the market usually reverses shortly after home values double
    3. Economic outlook– when interest rates invert (i.e. short-term rates are higher than long-term rates) the economy usually stalls within a year; rates have not inverted yet, but are getting close

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  • October Market Trends November 16, 2017 by

    October was another “blowout” month for Peninsula real estate markets.  The number of sales were high, inventory of homes for sale low and falling, and multiple offers were plentiful.  The number of homes for sale is likely to stay low until March/April of 2018, traditionally the two months of the year when the highest number of new listings come to market.  This is why I suggest to homeowners to get their homes on the market during February of each year, before there is more competition on the market.  Buyer demand will be high for those homes that come to market before March/April, unless grossly overpriced.

    The local real estate market is now entering the 10th year of the market cycle that began during the fall of 2008.  These cycles typically last 7-10 years, from peak to peak.  When and what will cause this cycle to end?  It is anybody’s guess, but market cycles always do end.  For a no-obligation consultation and list of the most profitable projects to do before selling, call or email me.  I look forward to helping you!


    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.

    Los Altos Median Price (more…)

  • February Market Trends March 7, 2017 by

    Hot Real Estate Market Enters March Like a Lion…Will It Continue?

    The strong 2017 local real estate market continued during February. In most areas, the number of homes sold, number of homes sold over asking price, and amount paid over asking price were all up from January – indicating home prices are rising. Will the hot market continue in March and April? It’s all about the inventory! March and April are consistently the months when most homes come to market each year. I will be watching closely to determine if current demand is strong enough to absorb the additional inventory as it comes to market. My belief (as predicted in January) is that demand will keep the number of homes available for sale low, and that the strong market and rising prices will continue at least until the summer.

    A beautiful spring with lots of flowers is coming soon- get out and enjoy it!


    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.

    Los Altos Median Price (more…)

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