Santa Clara County Year Review 2012

Overview: Palo Alto, Los Altos, Los Altos Hills

The results are in for 2012 and, as you can see, the Palo Alto market’s numbers are the strongest we’ve seen in the recent past! As we have reported in earlier quarterly updates, the market continues to be characterized by a shortage of homes to sell relative to the number of buyers.

Rising consumer confidence and continued low interest rates fueled buyer activity throughout the year, and sellers benefitted from multiple offers and a reduction in the time on market.

Palo Alto:

Median Sales Price:

• 2012: $1,726,000
• 2011: $1,428,000

Sales Price to List Price Ratio:

• 2012: 106.7%
• 2011: 103.6%

Average Days on Market:

• 2012: 22
• 2011: 30

The graph below shows the build-up of inventory experienced after the collapse of the financial markets in the Fall 2008. Beginning in the second quarter of 2011, sales kept pace with the supply of homes.

In March, 2009 the market had almost 7-months’ of inventory compared to about 3-weeks’ inventory at the end of 2012.

North Palo Alto:

North Palo Alto neighborhoods include Community Center, Crescent Park, Downtown, Green Gables, Old Palo Alto, and Professorville. Some of Palo Alto’s most expensive homes are found in these neighborhoods.

North Palo Alto properties followed a similar trend to those of the entire city, commented on above.

Los Altos & Los Altos Hills:

Like Palo Alto, Los Altos experienced a year of sustained robust real estate activity. The number of sales rose to 366, up from 307 in 2011, and the median sales price increased by 11%.

Los Altos:
Median Sales Price:

• 2012: $1,826,000
• 2011: $1,647,500

Sales Price to List Price Ratio:

• 2012: 103%
• 2011: 99%

Average Days on Market:

• 2012: 32
• 2011: 39

Los Altos Hills:

While the pace of the Lost Altos Hills market is slower, 114 homes sold in 2012 compared to 100 in 2011, the average days on market decreased slightly from 83 to 81, and at year-end 2012 there was a 3.1 month supply of inventory compared to a 6.2 month supply at the end of 2011. The median sales price rose 13% year over year.

Median Sales Price:

• 2012: $2,602,500
• 2011: $2,294,250

Sales Price to List Price Ratio:

• 2012: 98.1%
• 2011: 95.3%

Average Days on Market:

• 2012: 81
• 2011: 83

There was a 3.1 month supply of inventory compared to a 6.2 month supply at the end of 2011.

 

Changes in Tax Laws:
We appreciate being your source for real estate information and would like to remind you that starting in 2013, gains realized on some real estate sales may be impacted by the new 3.8% tax imposed to fund comprehensive healthcare reform. Additionally, as part of 2012 end-of-the-year legislation, Congress approved other changes in the tax law. We encourage you to check in with your estate lawyer and your CPA to learn how these changes might impact your personal situation. While you may not currently be considering the sale of your home, if you are in need of an updated opinion of value on your home as part of your planning process, please do not hesitate to contact us. We would be delighted to be of service to you.

We invite you to visit our website, www.CarolandNicole.com for up to date local market statistics.

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DRE #s 00946687, 00952657
1550 El Camino Real, Suite 100
Menlo Park, CA 94025
w: 650.465.5958
c: 650.740.7954

http://www.CarolAndNicole.com

The above numbers and pictures are based on information reported to the Multiple Listing Service (MLS). One of the unique aspects of the Palo Alto market is that not all real estate business is conducted through the MLS. Contact us for a more in-depth look at the complete Palo Alto market!