It is the best of times for home sellers, it is the worst of times for home buyers, but is this a new age in local real estate? Sellers are receiving multiple offers within hours of properties hitting the Multiple Listing Service. Buyers continue to complain about a lack of inventory from which to choose from. The Silicon Valley real estate market has rebounded. But is this active market that far off from markets of year’s past? What is fact and what is fiction?
Here is a look at the 2nd quarter of real estate sales in Los Altos and Los Altos Hills. You decide. Note: all data was taken from our local multiple listing service and is deemed accurate.
First, let us examine the inventory question.
In Los Altos, there were 140 new listings during the 2nd quarter of 2013. How did that compare with the 2nd quarter of 2012, 2011 etc.? In 2013 there was slightly more inventory on the MLS than any of the last 3 years (see graph). Note: this does not include pocket listing inventory which appeared to be higher in 2013 than years past.
There wasn’t a significant change in the number of new listings in the 2nd quarter in Los Altos Hills either.
How have home sales been?
The number of closed sales in Los Altos was up and has continued its steady growth since 2009.
Whereas Los Altos Hills has remained consistent in the number of sales over the last few years.
Are homes really selling that quickly in Los Altos and Los Altos Hills?
In Los Altos, the average time it takes to sell a home is down dramatically from 53 days in 2009 to just 18 days in 2013.
Homes in Los Altos Hills have seen some reduction in the time it takes to sell a home, but not as dramatic as those seen in Los Altos.
The list price to sales price ration has gone up substantially for Los Altos and moderately for Los Altos hills.
Lastly, How have prices fared during the 2nd quarter?
The median sales prices for Los Altos reached an all time high, topping out at 2 million dollars. Los Altos Hills has rebounded and is also up to nearly 3 million.
While the Los Altos real estate market has been an incredibly active and home prices have appreciated substantially, it is not a lack of inventory that is driving this market, rather buyer demand has pushed prices up and shortened the sales cycle.
Buyer demand for Los Altos Hills has come back somewhat but at a less hectic pace.
What does this mean for home sellers in Los Altos and Los Altos Hills?
Although we are seeing some changes in the market (higher cost of funds and buyer push back) Los Altos home seller’s should remain in the driver’s seat. However, they need to be more cautious as the year progresses.
Home sellers in Los Altos Hills need to be extra diligent in pricing and marketing their homes otherwise they will find themselves on the wrong side of the market with a home that sits on the market too long resulting in a lower sales price than desired.