May started on a high note with an increased level of activity in the Palo Alto real estate market. The highly anticipated Facebook IPO was adding fuel to a market already on fire. There were 75 single family homes listed during the month and 47 homes sold, a 10.3 percent and 27 percent increase respectively over the previous month. And while the median sale price dropped comparing with April, year-over-year growth stood at 20.7 percent. Average days on the market dropped to 11 days in May, the fastest sale cycle in history of the city.
The optimism, however, did not last through the whole month. The performance of the stock market and the financial crisis in Europe changed the mood on the street and put a damper on the runaway prices. The stream of buyers at the open houses slowed down — instead of the wild stampede we experienced earlier in the year, we saw a very orderly stream of visitors taking their time to think about the property and to evaluate the opportunities. And while multiple offers were still a common occurrence, the number of offers extended for each property started to decrease.
With school and college graduations just around the corner, the real estate market is settling into summer mode. If market behavior follows the pattern of previous years, we will see the active inventories of both single family homes and condos increasing during June and July, and the sale cycle lengthening. The sellers market should persist through the summer and into the fall while competition for the available home may lighten up, making it easier for motivated buyers to get their offers accepted.
This post originally appeared on PaloAltoCal.comMonth-Over-Month
Month, Year Listed Sold Median Price DOM February 2012 42 24 $1,950,000 29 March 2012 53 40 $1,700,000 16 April 2012 68 37 $1,998,000 14 May 2012 75 47 $1,690,000 11
Month, Year Listed Sold Median Price DOM May 2009 66 42 $1,501,000 55 May 2010 66 51 $1,409,000 27 May 2011 59 55 $1,400,000 14 May 2012 75 47 $1,690,000 11