Palo Alto is home to Stanford University. Two great downtown areas, top-performing K-12 schools and a wonderful neighborhood feeling and a very vibrant downtown.
This chart shows the distribution of final sales prices for single family residences in Palo Alto during 2017. The entry price point is now $2.0M with the majority of homes selling for $2.0M to $4.0M.
The annual median price for Palo Alto homes rose 15.7% in 2017. This followed a 4.4% decline in 2016, but is consistent with the 11-22% increases in 2012-15. The annual increase in the median price for Palo Alto homes has averaged 8.2% per year since 1998 (CAGR).
The average $/SQFT for Palo Alto homes was $1,651 in 2017. The above scatter chart shows the final sold $ per SQFT for with each closed sale represented by a dot. This shows both how $/SQFT varies by home size and the distribution of home sizes
Market demand remains strong at 20-year highs. The average days on market (red line) reflects demand in terms of how fast a new listing sells. The average final sales over/under list price reflects demand in term of competing multiple offers.
Sales vs. List price percentage typically varies by how long the home has been on the market. Homes that sell after one weekend on the market typically sell for over list price. Each Palo Alto home sale in 2017 is represented by a dot.
The annual supply of new listings for Palo Alto homes has declined by about 35-40% over the past ten years. There is no expectation of a significant increase in the foreseeable future.
The month-end inventory of Active Listings is fairly season with December being the low-point during the year. Inventory levels over the past fives years has been relatively consistent.
A view of the quarterly median price provides a 20-year perspective on the Palo Alto market. Note the slight decline in 2016, which I suspect is partially due to increased restrictions on money flowing from mainland China and uncertainty of the 2016 elections.
This monthly view of median prices for Palo Alto homes provides more insight into the ebb and flow of our real estate market. Keep in mind that the fluctuation may be due to a change in the mix of homes selling in a particular month, not necessarily changes in home values.
The monthly average sales price over/under list price percentage provides a little more insight into how the current real estate market is moving. Remember that these are averages. See the scatter chart above for how this varies by Days on Market.
The monthly supply of new listings for homes in Palo Alto. Note the seasonality with December typically being the low-point during the year.
This Days on Market chart shows the monthly average for Palo Alto homes sold. The spikes are typically in Dec-Jan during the slowest time of the year.
Interestingly the monthly number of Closed Sales appears to be relatively consistent. Note that the Closed Sale numbers are reported at the close of escrow, which is typically one month after the actual sale (In-contract)
Sources: The data above is obtained directly from MLSlistings, the multiple listing service (MLS) serving Santa Clara and San Mateo counties. The information is deemed to be accurate, however is not guaranteed.