Los Altos Homes – Market Update as of July 2016
Los Altos and Los Altos Hills homes are one of the most desirable in Silicon Valley. A quiet family-oriented community with top-rated elementary through high schools throughout the city. A great central location with relatively short commutes to most high-tech companies. A very cute downtown village and close proximity to the new San Antonio shopping center, downtown Mountain View and downtown Palo Alto. All of this results in Los Altos homes being in the $2M to $4M price range.
The upside of such a desirable community is that there is a very strong track-record for appreciation in home values. The annual rate of appreciation has been 7-8% going back to 1998. There have only been two downturns during this time. The Internet Bubble (-20%), which followed a +55% jump in the prior year, so more of a return to normal. The Great Recession (-16%) that took three years to recover.
The average Sales vs. List Price percentage hit a peak of 11% in 2014, which was a little higher than during the Internet Bubble. We appear to be returning to more normal levels. However, demand is still strong with the average days on market still at all-time lows.
The chart below shows how the Sales vs. List Price % varies in relation to the number of days on market. Homes that sell within the first week or two on market, typically command up to 20% over list.
Overall, Los Altos homes are selling for $800 to $1,500 per SQFT with the average being $1,230 per SQFT.