Los Altos 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.
This chart shows the distribution of final sales prices for single family residences in Los Altos. The entry price point is now at $2.0M with most “move-in” ready homes in the $2.5M to $3.5M price range.
Median prices rose by 12.7% in 2018, which is a slight increase over 2017’s 11.4%. The average increase price for Los Altos homes over the past 20 years has averaged 7.2% per year since 1998 (CAGR).
Los Altos homes are selling, on average, for $1,500 per SQFT. This measurement varies by size of home and the lot. Each closed sale is represented by a single dot. The above scatter chart shows the $/SQFT for each single family home in 2018.
Market demand for Los Altos homes remains very strong. Average Days on Market (red line) are at historic lows and the final sales vs. list price (blue line) are at historic highs.
The finals sales vs. list price varies significantly by the number of days on market. The scatter chart shows shows the actual % over/under list price for homes sold in 2018. Note that homes that sell after one weekend on the market typically sell for over list price, which is usually the result of multiple offers.
The annual supply of new listings for Los Altos homes has declined by about 35-40% over the past ten years. Existing residents are just not moving as in the past.
A view of the average quarterly median price provides some insight to the ebb and flow of the market over the past 20 years. Note the short-lived (5 quarters) Internet Bubble and that the only significant “decline” in home values (~15%) over the past 20 years was the result of the global “Great Recession”.
This monthly view of average median prices for Los Altos homes provides a closer look at our current market. Keep in mind that fluctuations may be due to a change in the mix of homes selling in a particular month, not necessarily changes in home values.
The month-end inventory of Active listings is very seasonal. December is usually near-zero due to the holiday season. Note: “Inventory” is the number of Active Listings at the end of the month, which is the net of New Listings less Pending and Closed sales.
The monthly supply of new listings for homes in Los Altos is very seasonal. Most Sellers avoid listing their homes during the holiday season, long holiday weekends and summer vacation.
The above chart shows the monthly average days on market over the past five years. Interesting to note that the monthly average is near 10 days, which reflects that most homes are selling after only one weekend of open houses.
The above chart shows the monthly average sales price over/under list price percentage over the past five years. Remember this is an average of all home sales. See the scatter chart above which shows what to expect on a specific opportunity.
The monthly number of Closed Sales is also very seasonal. January is usually the low-point of the year followed by a ramp-up in Feb-March. Note that “Closed Sales” are sales that have closed escrow, which typically occurs the month after the actual sale (Pending, 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.