Updated June 2020
Palo Alto is the only city in Silicon Valley that has not experienced a decline in the supply of New Listings during the first six months of 2020. The number of Closed Sales did decline significantly, by 25%, which probably reflects the 30-day lag in recording closings. The Median Price shows a very slight decline from 2019 and a 6% decline from its peak in 2018.
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 YTD Annual Median Price declined slightly (2%) over 2019, which extends the decline from the market peak in 2018. The market appears to have plateaued at $3.0M, which is 3 times higher than 2000-04. Overall, the median price has appreciated 7.6% per year since 1998 (CAGR).
Market demand remains relatively strong. The average time to sell continues at historic lows. The average final sales price vs. list has declined to 1.3% 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. The number of Sales is dramatically lower due to Covid and the 30-day lag in recording sales (from June). The 2020 numbers are annualized based on first half YTD results.
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 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.
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.