Updated July 2019
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 are in the $2.0M to $5.0M price range. 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 is on-track to decline by 3.5% in 2019. This would be the second decline over the past 10 years.
Market demand for Palo Altos homes continues to be very strong. The average Days on Market (red line) is up slightly, but still at historic lows. The average Sales vs. List Price percentage is down significantly to 3% over List compared to 8% during the previous three years. This reflects that homes are still selling quickly, however with 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 Closed Sales (red line) is on-track to be the lowest in 20 years.
Sales vs. List Price percentage typically varies by how long the home has been on the market. Homes that sell after one weekend on the market typically sell for over list price. There is a noticeable downward shift with fewer homes selling for 15%+ over List. The dots represents a Closed Sale.
The Palo Alto homes sold for an average of $1,673 per SQFT in 1H2019. The $/SQFT does vary widely. The scatter chart above shows the $/SQFT for homes sold in 2018 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. The decline started in Q3 2018, then jumped back in Q2 2019.
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 average Days on Market is fairly consistent with prior years. There was an unusual spike in June. The spikes are typically in Dec-Jan during the slowest time of the year.
The monthly average Days on Market shows a dramatic drop to near-zero in late 2018-early 2019. It bounced back to around 4%, which is significantly lower than 10%+ in prior years. This reflects fewer offers driving up the final sales price.
The Inventory of Active Listings has risen in 2019. There are now around 50 Active Listings compared to just under 40 in prior years.
The supply of New Listings in Palo Alto is fairly consistent with prior 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.