Things just keep getting better for East Menlo Park real estate. The number of properties sold is up 50% from a year ago and the time it takes to sell (Days on Market) is down 62%. Both of these numbers back up the optimistic feeling that’s in the air. The economy continues to do well and there are more buyers out there ready to make a move. People are able to get loans and they want to put down roots.
Demand is Up
The demand in Menlo Park may also be due to people getting priced out of more expensive areas like Palo Alto. Even clients who were dead set on living in Palo Alto have started to reconsider with the dramatic price jumps on the other side of the creek. We see buyers starting to realize that Menlo Park has many of the same attributes that make Palo Alto so desirable—great schools, wonderful restaurants and shopping, and proximity to employers and major commute routes.
Inventory is Down
Inventory is down slightly from a year ago, from 20 properties for sale in Q2 2013 to 16 for sale in Q2 2014. This may account for the decrease in selling time, since less inventory means a more competitive market where buyers need to move more quickly to make sure they get the house they want. Another factor is that last year at this time there were three higher priced listings that were dragging down the median selling time.
Prices are Confusing
Although all other indicators show that the market is strong, the median sold price is down slightly from a year ago. In Q2 2013, the median sold price was $2,217,500. In Q2 2014, it was $1,950,000, down 12%. Huh? That doesn’t seem to make any sense, unless you take into account the types of properties that are being sold.
In this area, we have the following neighborhoods and typical price ranges:
Vintage Oaks: $3-4 million
Linfield Oaks: $1.62-2.2 million
Felton Gables: $1.62-2.2 million or up to $3.5 million for a new home
Menlo Oaks: $2.2 million for a teardown or $5 and up for a brand new house
Because of the big difference in prices among neighborhoods and the relatively small number of houses being sold, the median sold price can easily skew up or down, depending on what types of properties in which neighborhoods are on the market.
What Does It Mean for You?
As usual, it depends. Are you buying or selling? What neighborhood and type of property are we talking about? What is your time frame? What are your short-term and long-term goals? Cold, hard statistics can only tell part of the story. If you want to know more about what this market means for you, I’d love to discuss all the specifics with you!
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