Updated January 2021
The annual median price for Palo Alto home continued to decline slightly in 2020 from its 2018 peak . Not showing much of an impact from Covid-related restrictions. Overall, the median price has appreciated 7.5% per year since 1998 (CAGR).
Market demand remains strong for Palo Alto homes. The average Days on Market are slightly higher than 2012-18, but remain at historically low levels. The average final Sales vs. List price has declined to near-zero over list compared to 8% in 2017-18. This suggests fewer competing offers.
The supply of New Listings (blue line) significantly over recent years. Yet the number of closed sales remains flat.
Palo Alto homes start at $2.0M. Their outstanding performing K-12 school district commands a high price. The chart above shows the distribution of prices for homes by number of bedrooms. 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. Click on links to see additional information the Palo Alto Community and Schools.
The Palo Alto homes sold for an average of $1,660 per SQFT in 2020. The $/SQFT does vary widely. The scatter chart above shows the $/SQFT by the size of the home. This gives you an idea of range of both $/SQFT and the size of homes in Palo Alto.
The Quarterly Median Price is showing a significant dip in Q2. This may be due to the 30-day lag in publishing the final sale price, so this does not include June sales. Overall, prices appear to have plateaued during 2018-20.
This Monthly Median Price provides additional 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 Days on Market returned to historic lows after a significant jump in 2H2019.
The monthly average sales vs. list price percentages are significantly lower in 2019 and are now averaging only 1.3% during the first half of 2020. This suggest a friendlier market for buyers with fewer competing offers.
Final sales price vs. List price varies significantly by number of days on market. Homes selling during the first two weeks on market typically sell for over list, while homes on the market typically sell for under list. Buyers should plan on paying 5-10% over list in order to compete for the more desirable listings. Note: this is using the current list price, which may be after a price reduction.
The supply of New Listings in Palo Alto is consistent with prior six years. Note the seasonality with December typically being the low-point during the year.
The Inventory of Active Listings was significantly higher during 2019 and has spiked this May-June.
The monthly number of Sales returned to traditional levels in May-June, but the YTD numbers are 25% lower than 2019.
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.