Among eight Silicon Valley cities and towns, home price increases in Menlo Park are running away from the pack. Median home price averages through September 2014 show an increase of 24% over 2013 median prices. That could be considered near-skyrocketing when compared to other local communities.Menlo Park’s median $1,875,000 single-family home price ranks fifth among the communities we looked at, which include Los Altos Hills, Los Altos, Palo Alto, Cupertino, Mountain View, San Jose and Atherton. Yet the 24% price increase is a substantial 6% higher through mid-September than the second-largest increase, 18% in Cupertino.
Here’s a look at all the median home price increases:
Menlo Park + 24% Cupertino + 18% Atherton + 15% Palo Alto + 14% Los Altos + 11% Los Altos Hills + 11% Mountain View +10% San Jose +9%
Atherton, typically, leads in the median price total dollar amount at $4,110,000. San Jose trails the field with a more “affordable” $752,000 median average. The average in Menlo Park through mid-September is $1,875,000.
Home prices in Menlo Park go up as inventory goes down
Most communities throughout Silicon Valley are experiencing an unprecedented dearth of available homes on the market. The trend has been building over several years, and Menlo Park is mirroring it. In the first eight months of 2011 and 2012, 784 new listings appeared. In the same period the next two years, that number dropped to 533.
How are buyers reacting to increased home prices and fewer homes available? They’re buying them fast, and happily paying more than the listing prices.
From January to August 2014, Menlo Park homes sold at an average of 107.2% of what they were listed for. During the hot-selling summer months of June through August, the average days on the market for homes was just 23 days.
These trends will likely continue. As to the decreasing number of available homes in Menlo Park – and across Silicon Valley – some experts believe that by the beginning of 2015, we’ll see the fewest homes on the market of any year in the last decade and a half.