The Palo Alto real estate market went from rocket ship to mere jet plane appreciation as the median price of single family homes increased 15% in 2014 after 21% appreciation in 2013. Menlo Park switched places, though, ramping up to 24% in 2014 after seeing 15% appreciation in 2013. More startling is what those numbers translate to in price. Palo Alto’s median price has gone from $1,725,000 in 2012 to $2,410,000 in 2014. In the same period Menlo Park rose from $1,315,000 to $1,815,000.
Atherton prices increased 24% in 2014 and logged the highest median price for the Peninsula at $4,435,000 followed by Los Altos Hills at $3,250,000, Portola Valley at $2,465,000 and Woodside at $2,272,500. 2014 marked the first time that median prices in Palo Alto exceeded Woodside and nearly matched Portola Valley.
Price appreciation in the rural cities mostly did not keep up with urban flats. Los Altos Hills enjoyed a 16% bump but Portola Valley rose only 7.4% and Woodside 7.5%. Meanwhile, San Carlos and Redwood City rose 16%, Los Altos jumped 12% and Mountain View rose 15%
Lack of inventory continues to fuel price appreciation, with the number of sales of single family homes in San Mateo and Santa Clara County hitting its lowest point in the last ten years, with the exception of the 2009 market crash. This lack of inventory is particularly acute in the mid-peninsula markets of Los Altos, Palo Alto, Menlo Park and Atherton making continued appreciation in these markets likely in 2015.