Mid-Year 2016 Real Estate Report – Los Altos / Los Altos Hills

The numbers are in for the first half of 2016 and over the past several posts we have provided market updates for Palo Alto and Menlo Park.

Our post today is focused on Los Altos and Los Altos Hills.

Los Altos

Number of Homes Sold

The Los Altos market got off to a slower start this year with sales lagging in the first quarter. Second quarter sales almost reached the same level as 2015. Year-to-date 2016 130 single-family homes have closed escrow, compared to 161 in 2015. This represents a 20% decrease in the number of homes sold.

(Source: MLSListings.com)

Median Sales Price

While the number of sales was down, the Median Sales Price continued to rise, reaching $2,826,500 for the first half of 2016 compared to $2,745,500 for 2015.

(Source: MLSListings.com)

Average Days on Market

Another favorable trend is the lower Average Days on Market that was 13 days for the first half of 2016.

(Source: MLSListings.com)

Sales Price to List Price Ratio

The Sales Price to List Price Ratio averaged 108.26% down slightly from the first half average of 110.53% in 2015.

(Source: MLSListings.com)

Market Observations

Not reflected in the above numbers is that there were 14 homes marketed during the first half of 2016 that were taken off the market without selling. Only 8 homes were price reduced prior to selling.

Los Altos Hills

Number of Homes Sold

Although the year got off to a slower start in the first quarter, Los Altos Hills enjoyed a robust second quarter with 44 sales of single-family homes for a total of 57 for the first half of 2016, compared to 54 for the first half of 2015.

(Source: MLSListings.com)

Median Sales Price

The Median Sales Price for the first half was $2,612,000 up slightly from the 2015 Median Sales Price of $2,600,000.

(Source: MLSListings.com)

Average Days on Market

There was a significant increase in the number of Days on Market, increasing from 32 days in 2015 to 56 days for the first half of 2016. However, there were 4 homes with Average Days on Market in excess of 200 days, including one at 763 days! When these are eliminated, the Average Days on Market is 31 days, consistent with the 2015 average.

(Source: MLSListings.com)

Sales Price to List Price Ratio

The Sales Price to List Price Ratio declined from 105.1% for 2015 to 98.7% for the first half of 2016.

(Source: MLSListings.com)

Market Observations

Not reflected in the above numbers is that 28% or 16 of the 57 homes sold in the first half of 2016 were price reduced prior to selling. There were 13 homes marketed during the first half of 2016 that did not sell and were taken off the market.

Summary

Overall the Los Altos and Los Altos Hills markets remain strong. Well-priced homes continue to sell at prices close to their list coupled with favorable terms. Buyers are motivated and qualified and are able to access financing terms at attractive rates.

Looking ahead at the year we expect the same strong market trends to continue. Buyers are attracted to the wonderful communities of Los Altos and Los Altos Hills, 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.