Palo Alto Market
Everyone wants to know when Palo Alto’s market will slow down. While I don’t have an answer to that question, I can certainly say “not yet!” Demand continues to be strong, as it parallels the economy, and supply continues to decrease.
In 2013’s third quarter, there were 144 new single family listings. That dropped to 138 in 2014 and 125 in 2015, a 13% reduction in inventory over 2 years. As inventory drops, sale prices increase. Palo Alto’s rolling 3-month average sale price increased 18% in 2015 for the city as a whole, with north PA rising at twice the rate of south PA. Days on the market remained steady at an average of 14 days.
Looking at Q2 in detail reveals that there were 45 sales in north Palo Alto during the quarter. Forty properties sold for $4 million or more, while only 3 sold for less than $2 million. In south PA, there were 52 sales. Three were over $3 million and 8 sold for less than $2 million.
As in the past two years, we have seen a run-up in prices over the first half of the year and early indications for the third quarter are that things are leveling off and should be fairly steady until early 2016. This is the time for buyers to be active and sellers to take advantage of unprecedented sales prices.