The numbers are in for the first half of 2016 and over the next few days we will be providing you with market updates on some of the communities where we work. Overall our market is strong, but it is clear that some of the frothiness of the past few years has diminished.
Today our update will focus on Palo Alto.
Number of Homes Sold
The number of single-family homes that closed escrow during the first half of 2016 has remained relatively constant, and the second quarter was typically robust. The total number of single-family homes sold during the first half of 2016 was 168 compared to 164 for the same period in 2015.
(Source: MLSListings.com)
Median Sales Price
The Median Sales Price for the first half of 2016 dipped to $2,550,000 compared to the 2015 Median Sales Price of $2,688,500, representing a 5% decline.
(Source: MLSListings.com)
Average Days on Market
The Average Days on Market increased to 23 days, the highest it has been since 2011.
(Source: MLSListings.com)
Sales Price to List Price Ratio
The strongest indicator of the change in the real estate market is the Sales Price to List Price Ratio, which declined from 112.5% in 2015 to 104.8% for the first half of 2016.
(Source: MLSListings.com)
Palo Alto Market Observations
In years past it was very uncommon to see expiring and cancelled listings. Year-to-date for all of Palo Alto there were 31 homes introduced to the market that did not sell. Additionally, not reflected in the above numbers is that of the 168 homes sold, 19 or 11.3% were price reduced prior to selling.
One of the factors fueling some of the exceptional prices of the past few years was the number of all-cash buyers from overseas. Buyers relying on institutional financing were at a disadvantage when competing in a multiple offer. The number of overseas buyers is down, and this represents a wonderful opportunity for loan-reliant buyers to achieve their dream of home ownership.
Summary
Overall the Palo Alto market remains healthy. Our local economy continues to be fueled by innovation and optimism. Buyers are qualified and interest rates remain attractive. Well-priced homes continue to sell at prices close to their list price coupled with favorable terms. Looking ahead at the year we expect the same strong market trends to continue. Buyers are attracted to the wonderful Palo Alto community, the outstanding public schools and the proximity to Stanford University.
You may access detailed and accurate statistics for your neighborhood through our website, and if you would like an opinion of value on your home, please do not hesitate to contact us. It would be a pleasure to be of service to you.