While there has been a slight change to the fundamental market indicators, Menlo Oaks average price has dropped mostly due to the types of properties selling—a large percentage of the sales have been land value sales. There were six closed sales in the Menlo Oaks neighborhoods with an average price of $3,043,333. The highest priced sale was 980 Berkeley Avenue, a seven year old classic, traditional style home on a 25,000 sq ft lot which sold for $5,100,000. Other than the election, the other big news was interest rates crept up and we ended the year with the 30 year fixed over 4%. While this is an exceptional change from last year, the sense is it will not have a large impact on sales.
The Menlo Oaks neighborhood continues the trend of large lots being bought for land value. Many of these lots are selling to speculators but a good number are being bought by local families who love the rural feel, large natural trees and convenient location. In 2016, eight homes sold for land value with the average lot size of 24,713 sq ft at $133 per sq ft lot.
We began 2017 with a lower than usual inventory and what appears like a strong buyer pool fueled by high paying tech jobs and resolved to the current interest rate and political landscape.