The Palo Alto real estate market is undergoing a remarkable shift. Over the last year, the inventory of available homes has dropped considerably, resulting in far fewer sales. This coupled with listings being bought up at a near-record pace tells buyers that this is no market to sit back and take your time in. And those who are looking for a Palo Alto home should be prepared to pay more than their new home is listed for.
Rising Palo Alto home values
Home values in Palo Alto continued to rise in July 2014, compared to July 2013. The average sold price jumped from $1,744,263 to $2,066,562, an increase of 18.48%. Property values throughout Silicon Valley have been on the rise over the last year, and those in Palo Alto are keeping up with the trend.
Decrease in the number of Palo Alto homes sold
In July 2013, 346 units were sold. In July a year later, that number dropped 42.77% to 198. What we’re seeing isn’t just more buyers seeking top-flight homes in Palo Alto but also fewer homeowners bringing their homes to the market. And what happens when a home does go up for sale? It moves fast.
Homes are leaving the market rapidly
The average days on the market for Palo Alto homes in July 2014 was just 42, down 25% from 56 days a year prior. But that doesn’t tell the whole story. Look at these July 2014 breakdowns of the 198 homes sold:
- 8 sold in less than 24 hours after being listed
- 42 sold in less than 20 days
- 98 homes didn’t pass the 30-day mark
- By the time they had reached 60 days on the market, 171 homes had been sold
- Only 27 homes sold after being on the market for more than 60 days
Motivated buyers for Palo Alto homes
How motivated are buyers looking for homes in Palo Alto? Very – and they’re willing to pay, on average, 13.1% over the listing price. The average listing price of homes sold in Palo Alto in July was $1,873,272; the average sold price of those homes was $2,066,562. In July a year ago, the average sold price was 9% higher than the price for which the homes were listed.
The advice for buyers is, be prepared before you start your home search. Have your financials in order, and be ready to make an initial offer that’s higher than the asking price. And don’t waste time – strike while the iron is hot.
My approach to the Palo Alto homes market is to help buyers through extensive market knowledge and aggressive negotiation strategies. If you need a Realtor who will work tirelessly for you to get you the home of your dreams, let’s talk about making that happen. Call (650) 947-2942.
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