The median price for a single family home in Palo Alto jumped to $1,720,000 in August, a 24.6 percent increase comparing with the same month last year.
This increase happened while both the number of sales and the number of new listing were dropping. In fact, the number of new listings in Palo Alto decreased by almost 10 percent and the number of sales fell by 14 percent.
The drop in sales is not an indicator of low housing demand however. The average number of days on the market decreased to 16 days and most desirable homes are being sold in less than a week.
Our own listing on E. Meadow generated eleven offers in just 5 days. The seller was able to accept a non-contingent full-cash offer at more than 15 percent over the asking price and subsequently closed in 17 days.
Local developers are working on filling the gap in the demand for housing. On August 11th D. R. Horton released the first stage of the Alma Village development that will eventually contain 34 single family homes as well as Miki’s Farm Fresh Market and a Starbucks (3400 block on Alma).
They opened with a silent auction and now have three homes listed on MLS. The model homes are available for viewing by potential buyers. These new homes are priced under $1,700,000 and will complement the sales of existing homes in the surrounding neighborhoods.
Michael Talis is co-owner of TALIS Real Estate.Month-Over-Month
Month, Year Listed Sold Median Price DOM May 2012 75 52 $1,725,000 11 June 2012 41 45 $1,721,000 16 July 2012 55 47 $1,690,000 19 August 2012 38 42 $1,720,000 16
Month, Year Listed Sold Median Price DOM August 2009 45 29 $1,308,000 40 August 2010 47 41 $1,275,000 29 August 2011 42 49 $1,380,000 23 August 2012 38 42 $1,720,000 16