We sold 450 homes in Palo Alto in 2011 as opposed to 443 houses in 2010. Our current inventory continues to decline, with only 19 active listings on the market as of December 29, 2011.
Average days on the market is 32 days as opposed to 44 days last year.
Houses are selling on average at 98% of the list price, with many listings selling above asking price.
What does that mean to buyer and seller:
While it is difficult to summarize how to approach such an important decision as buying or selling a home, following are some guidelines:
For seller, it is a great time to sell:
1- just make sure you hire the right agent to do the job, and interview at least three local agents before you hire one.
2-price your home in line of the market because buyers are still looking for value.
For buyer: the Palo Alto real estate market is going to stay strong this year. Demand will remain higher than the supply and multiple offer situations will be as frequent as the last year, if not more frequent.
1- to be educated about the local market history in general and aware of almost daily changes in the market - what is listed, and what is selling and at what price.Some houses are selling before they even are listed on MLS. Having an agent that is knowledgeable of and connected to the local market is of great value in the buying process to help buyer not miss a good value, understand the current market conditions, negotiate the best offer and make the process less stressful.
2- to be approved by a reputable lender.
3- to be ready to ask about, read and investigate all the reports about a listing that they might consider before making any decision.
4-to be ready to make a quick decision when they see the right house, before it sells.
5- to recognize that although the median sale price is slightly higher this year in Palo Alto as opposed to last year, it is still below the record high of 2007. Demand for houses in Palo Alto is high and the supply is limited; if you have a stable job, it is a good time to buy a home.
AVERAGE DAYS ON THE MARKET
SELLING PRICE VS. ORIGINAL LIST PRICE IN PALO ALTO FOR 2010 VS. 2011