10 April, 2014

New Record Highs In Home Prices

 The first quarter of 2014 produced new record prices in our local housing market. Inventory remained low, demand has been off the charts, and the influx of cash buyers willing to pay well above the list price is astonishing.

The result is another incredible increase in median home prices from a year ago. The median price for single family homes went up 16% in Palo Alto (from $2,100,000 to $2,435,000), 6% in Menlo Park (from $1,805,000 to $1,913,000), 13% in Los Altos (from $2,100,000 to  $2,380,000), 30% in Atherton (from $3,510,000 to $4,555,000), 4% in Portola Valley (from $2,400,000 to $2,485,000) and 17% in Woodside (from $2,050,000 to $2,400,000).

Multiple offer situations were the norm and drove the prices significantly above the list price. The sale to list price ratio was 113.9% in Palo Alto, 106.4% in Menlo Park, 113.6% in Los Altos, 102.5% in Atherton, 106.1% in Portola Valley and 98.1% in Woodside.

During the first quarter, there were only 64 new listings in Palo Alto, 53 in Menlo Park, 46 in Los Altos, 24 in Atherton, 23 in Portola Valley and 21 in Woodside.

The off-MLS market has also been active, with most off-MLS listings selling with multiple offers.

The townhouse/condominium market was stronger than the market for single family houses. During the first quarter 21 units were sold in Palo Alto, with an incredible increase of 28% in median price (from $978,000 to $1,255,000). The sale to list price ratio was 110.5%. 15 units sold in Menlo Park with a 43% increase in median price (from $802,000 to $1,150,000). The sale to list price ratio was 107.7%.

Today’s market is the ultimate seller’s market. If you are thinking about selling your home it is a great time to sell. If you are a buyer, make sure that you have an agent with intimate knowledge of the local market to help you compete with other potential buyers.

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