Palo Alto Housing Market – Fourth Quarter 2010 Update
by Alex Wang on Jan 13, 2011 | 2 Comments »
| Palo Alto | 4th Quarter 2010 | 3rd Quarter 2010 | 2nd Quarter 2010 | 1st Quarter 2010 |
|---|---|---|---|---|
| Median Sales Price | $1,315,000 | $1,385,000 (-5%) | $1,468,000 (-10%) | $1,436,785 (-9%) |
| Average Days on Market | 45 | 35 (+29%) | 36 (+25%) | 65 (-31%) |
| Closed Sales | 124 | 119 (+4%) | 123 (+1%) | 72 (+72%) |
| Sales Price to List Price Ratio | 100.86% | 101.26% (-0.4%) | 99.91% (+1%) | 98.33% (+2%) |
| Total Sales Volume | $174,393,860 | $183,524,813 (-5%) | $205,188,388 (-15%) | $112,621,878 (+54%) |
(single-family home data from MLS listings Inc.)
Palo Alto, the feather in the cap of Silicon Valley real estate, struggled with its median sales price, falling two straight quarters after reaching its peak in second quarter of this year since the housing bust. The fourth quarter of 2010 was lower than the same period in 2008 ($1,350,000) and in 2009 ($1,370,000). This is due to two factors: the real estate market adjusting to pre-bubble prices, and fewer expensive properties being listed because of the deprecated values.
On the positive side, sales are up overall, beating all previous quarters this year and the fourth quarters of 2008 and 2009. The sales price to list price ratio is also one of the most balanced of our four city comparison, and with a ratio just above 100%, the only one favoring the seller.
Categories: Market Updates, Palo Alto, Silicon Valley News
I think the overall sales volume is a better measure of the RE industry’s health compared to median sales price. I think what we are seeing here is more sellers becoming realistic about what their home is worth in the eyes of the market, accepting the loss, and moving on.
Also, the small but noticeable spike in interest rates probably pushed some fence sitters into contract, out of fear that rates might continue to rise.
Definitely some good points Max. Sales volume is a great indicator of overall market activity.