In our February North Palo Alto Market Report, we had a headline saying “Here We Go Again” and boy were we right. The average price for the first quarter of 2013 was up 30% over the previous year and the median price 34%. Our prediction of a 12% to 15% price rise for the first quarter of the year was low as the average price of a home in Palo Alto actually rose from $1.65M to $2.25M quarter-over-quarter! Inventory continues to be the big story as properties offered for sale were down 43% from the same quarter last year. Without a huge influx of supply it is hard to see this rally stopping and our traditional pattern of establishing prices in the late winter/early spring and then holding steady for the rest of the year, may be shattered as prices continue to rise into the summer.
For Q1 2013 sales trends in other local markets, check out these quarterly report cards: