Updated May 2020
Shelter-in-place orders resulted in a 30% decline in the supply of New Listings. Market demand remained relatively strong with continued historically low days on market and final sales prices that exceed list price. The median price did decline by 15% in April, but I suspect this mostly about a decline in sales for higher-priced homes.
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. Click on the following link to view more information on the community and its schools.
Los Altos homes start at $2.0M with most “move-in” ready homes in the $2.5M to $4.0M price range.
Median prices declined by 3.1% in 2019 compared to 2018 which rose by 12.7% and by 11.4% 2017. They are still 8.5% higher than 2017. The average annual price appreciation for Los Altos homes over the past 20 years has averaged 6.7% per year since 1998 (CAGR).
Market demand for Los Altos homes declined in 2019. The time to sell increased to its highest since 2012, but is still historically short. The average final sales vs list price percentage drop to only 1% over list, the lowest since 2011.
The supply of New Listings increased in 2019 compared to the five years, however is still at historically low levels. The number of Closed Sales remains consistent with the past six years.
The finals sales vs. list price has shifted noticeably with few sales over 10%. The scatter chart shows shows the % over/under list price for each home sold in 2019. Note that homes that sell after one weekend on the market typically sell for up to 10% over list price, which is usually the result of multiple offers. Note this shows the current list price and does not include any price reductions.
The $/SQFT varies significantly by size of home. The above scatter chart provides a good view into the distribution of home sizes and the $/SQFT for 2018 sales. The 2019 average $/SQFT declined to $1,386 from last year’s average of $1,503.
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 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 average days on market continued at historic lows during March-April of this year. The uptick in May coincides with the spike in New Listings during the same month.
The monthly average sales price over/under list price percentage has declined significantly. Strongly suggests a shift in market demand and a reduction in the number of competing offers.
The supply of New Listings increased in 2019, but is still at historically low levels. New Listings typically spike in Mar-May and again in Sep-Oct.
The monthly inventory of Active Listings was significantly higher in 2019.
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.