May 2009 sales of single family homes in Los Altos were the strongest for the year. However, when compared with historic May sales totals, the market continues to be unsettled.
According to MLS Listings, Inc. data, for the month of May 2009, 22 single family homes closed escrow in Los Altos. This is approximately a 50% decline over previous May’s sales totals. May 2009 sales totals (in units) were the lowest (for the month of May) in the last 12 years. The next lowest sales total was May 1998 with 24 sales for the month. The graph below documents the sales numbers.
The chart below shows a 12 year history of the average sales price, the median sale price and the average list price to sales price ratio for single family homes that closed escrow in Los Altos in the month of May. In short, prices are down!
Lastly, in addition to soft home prices, homes are taking longer to sell. In May 2009, it took on average 60 days to sell a home in Los Altos. The 12 year average for homes that sold in Los Altos in May was 27 days. See details below.
It still remains a tight credit market with only one lender (B of A, retail) generating jumbo loans with 20% down. Most lenders continue to require 25-30% cash down, which is problematic for today’s home buyer. Should we get more options in the mortgage market, we may see activity increase.