Updated June 2020
The supply of New Listing is down 25% during the first half of 2020 due to Covid-19 shelter-in-place rules. While the number of Closed Sales declined by 40%. Fortunately Median Prices has remained relatively stable (down 1%). Market demand remains strong with homes selling quickly, however final sales prices are averaging just slightly over list price suggesting fewer competing offers.
Menlo Park is a wonderful community with a fun downtown. Top performing elementary schools. Just blocks away from Stanford Shopping Center and downtown Palo Alto. Click on links to see additional information on the Menlo Park Community and Schools.
Menlo Park single family residences start at $1.0M. Homes in the Menlo Park City School district command a higher price. Homes in the northern areas are more affordable and the east Menlo Park homes the lowest price.
The YTD Annual Median Price is actually up 7.3% over last year and a return to its peak in 2018. The annual increase in the median price for Menlo Park homes has averaged 6.9% per year since 1998 (CAGR).
Market demand for Menlo Park homes remains strong. Average Days on Market (red line) jumped slightly from 21 to 26 days in 2019, but returned to historic lows in 2020. The Final Sales vs. List Price is declined significantly to 2.1% over list in 2019 and has remained there in 2020. This suggests that homes are still selling relatively quickly, but with fewer offers.
The supply of New Listings has decreased significantly, by 25%, in 2020 due to the Covid-19. Sales decreased by 40%, but lags the market by about 30 days. Suggests a potential increase in Inventory that could increase pressure on prices.
The final sales vs. list price varies significantly by how long the listing has been on the market. New listings selling within the first week or two of going on market, can be expected to sell for up to 10% over list. Listings that have been on the market for over 2 weeks are typically selling for 3-7% under list. Buyers and Sellers should plan accordingly.
The $ per SQFT varies by size of home. The scatter chart above shows the distribution of $/SQFT and the associated size of the home. Each dot represents a Closed Sale in 2019. The 2019 average was $1,357 per SQFT.
The Quarterly Median Price shows that the first two quarters of 2020 were consistent with the first two quarters of 2019, both of which were a decline from a spike during the first half of 2018. Suggests that home values are at a plateau.
This Monthly Median Price for Menlo Park 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.
Monthly average days on market shows a dramatic acceleration in market demand in May-June, reflecting pent-up demand. The spikes are typically in Dec-Jan during the slowest time of the year.
The final sales price is now just slightly over list. This is a significant decline from 9% in 2017-18. This reflects fewer number of offers competing for the same home.
The supply of New Listings for homes in Menlo Park jumped dramatically in May-June as Covid restrictions were relaxed. I expect July-Oct to continue this trend. Note the seasonality with December typically being the low-point during the year.
The Inventory of Active listings spiked in May-June as sellers returned to market after holding-back in Mar-April.
The number of Sales spiked up in May-June as the market returned.
Source: 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.