Prices continue to rise while the fundamentals begin to shift towards normalcy. West Menlo Park, specifically Allied Arts, Central Menlo, County/Alameda and Sharon Heights/Stanford Hills, ended the second quarter with an average sales price of $2,853,158, up 9.4% year over year. However, at the same time, a gentle shift in market fundamentals may mean we are moving into a more normal market. The available inventory of homes for sale rose to 2.3 months supply vs. 2.2 months supply in June 2015. In addition, the average time it took to sell a house in June 2016 rose to 46 days up from 31 days in June 2015.
While these changes are modest, they may be the first sign of things to come. There is a broad sense that the market is starting to cool…albeit from white hot to red. Markets typically ebb and flow. This slight market shift is part of that natural process. As far as real estate markets go, West Menlo Park is still extremely desirable and fundamentally very strong. Look for savvy buyers to take advantage of a slightly slower pace in the second half of 2016 while sellers continue to command and receive top dollar for their homes.