Updated May 2020
Our Shelter-In-Place orders reduced the supply of New Listings by 30% in April. Market demand remained relatively strong with continued historically low days on market and final sales prices still averaging over list price. Home values remain consistent with the prior year.
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.
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.
The Annual Median Price declined by 3.7% in 2019. This would be the second decline over the past 10 years. The 2019 median price is still higher than 2017.
Market demand declined in 2019. The average time to sell increased significantly to its highest point since 2011. The average final sales price vs. list declined to 2.6% over list compared to 8% in 2017-18. This reflects fewer offers that are not driving up prices.
The supply of New Listings (blue line) remains at historic lows at levels consistent with the past eight years. Interestingly, the number of Closed Sales (red line) is trending downward and is at the lowest point in 20 years.
Final Sales vs. List Price percentage varies by time on the market. Homes that sell after one weekend on the market continue to sell for up to 15% over list. New listings selling after two weeks on market are selling for below list. Note this is showing the current list price, after any price reductions.
The Palo Alto homes sold for an average of $1,644 per SQFT in 2019. 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 provides a good view of the trends in home values. Note home values appear to level-off starting in early 2018.
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 shows a dramatic jump in 2H2019. A similar jump also occurred in 2H2018. This is typically due to buyers buying into the school district before summer.
The monthly average sales vs. list price percentages are significantly lower in 2019 and are now averaging under 5% over list compared to 10-15% in 2013-15 and 2017. This suggest a friendlier market for buyers with fewer competing offers.
The Inventory of Active Listings was significantly higher during 2019 than the past six years. It is still much lower than 2002-10.
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 number of Closed Sales appears to be slightly less in 2019. Note that the Closed Sale numbers are reported at the close of escrow, which is typically one month after the actual sale (In-contract)
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.