Excellent Prices for Challenged Properties
If you have a property you’ve been thinking of selling, even if it is “challenged” due to location or condition, this is the time to sell it. In the first quarter of 2014, 14 properties sold with houses of 1200 square feet or less. Many of these were in original, 60-year-old condition. Those with 8000+ SF lots were sold for more than $2 million, while those on 6000-6500 SF lots sold for $1.6 – 2 million, depending on location.
Light inventory, Higher Prices
If you’ve been thinking that the market has to slow down and you can wait to buy a house when it does, it’s time to change your mind. Inventory in the first quarter of 2014 continued to be very light – only 108 single family homes in the 3-month period. The median sale price is up 8 percent year over year. More significantly, the median asking price is up 15% in North Palo Alto and 21% in South Palo Alto. With far more buyers than sellers in the market, multiple offers are the norm and the median sale price in Palo Alto in the first quarter was 17% over asking. Ten properties listed on MLS in the quarter fetched between 20 and 49% more than the asking price!
There have been recent rumblings in the news about revising Proposition 13, so over time this may help bring more properties on the market. It’s most likely that these revisions will first target commercial properties, however. Our best reading of the real estate crystal ball is that the feverish pace of increasing prices may slow, but it doesn’t look likely to reverse. This is a great time to stop thinking and take action!