For the third year in a row West Menlo Park has seen a phenomenal upswing in home valuations (West Menlo Park consists of the Central Menlo, Allied Arts/Downtown, Alpine Road, Sharon Heights and University Heights neighborhoods). The West Menlo markets median sales price has grown 29% from $1.8M in second quarter of 2012 to $2.4M in the second quarter of 2013. This is a $525,250 increase in the median sales price. The increase in prices is astounding, especially considering where our market was at the beginning of 2009. Yes, our market was not hit as hard as the rest of the country but we did feel the down turn.

What is driving this price trend? Lack of inventory, historically low interest rates and demand, the answer is yes to all the above. Year after year, the number of homes for sale in West Menlo Park has declined 15%; we have seen an 11% decline in homes sold and an 18% decline in homes under contract. Demand, however is through the roof. So, the market has only one direction to go and that’s up. The real estate world on the Peninsula did not follow the downward spiral felt in other parts of the country. The Peninsula’s outlook remains bright, thanks to continued low interest rates, the boom of healthy technology companies, the influx of new jobs, and a steady increase in the stock market. I anticipate this price trend will continue into the next quarter and beyond.