The third quarter in Palo Alto saw a continuation of the bounce off the bottoms of early 2010. This recovery is more dramatic at the lower end of the price point ($900,000-$1,300,000) than at the high-end (above $2,500,000). We analyze the individual neighborhood numbers with the proviso that many of these neighborhood statistics are built on small sample sets and should be read as indicators and not gospel. Three neighborhoods that stand out are:
COMMUNITY CENTER has seen the sharpest surge in demand of all the Palo Alto neighborhoods, up 150% off last year. This has resulted in a corresponding rebound in prices and given Community Center the feel of a hot neighborhood.
CRESCENT PARK, while still 20% off the 2009 peak, Crescent Park has come storming back in 2010. A trimming of inventory gets most of the credit, but the numbers indicate that some are seeing value in one of Palo Alto’s most beloved neighborhoods and are jumping in. A three month supply of inventory is generally regarded as an equal buyer/seller marketplace.
MIDTOWN, with its middle price range housing stock is enjoying one of the bigger recoveries off the crash of last year. And with median sale prices coming in at $115,000 over median list price, this neighborhood should continue to show appreciation into 2011.