A few days ago, the SJ Mercury News reported yesterday that the median home price in Silicon Valley increased for the first time in 2 years to $550,000 up 6.7% from October 2008. This is great news for the market in general and ultimately helps Los Altos and surrounding markets.
However, the median for Los Altos homes in October 2008 was $1.603M versus $1.580M in October 2009. That's down 1.4%.
The interesting aspect of that drop is that the percent of listing price received went down from 98.8% to 94.5% across those same periods. The number of homes sold in October 2008 versus October 2009 was 18 and 25 respectively. That's an almost 40% increase in sales volume. Bottom line: Los Altos sales are strong but medians are taking a small hit. This is generally caused by sellers being more motivated at this time of year and buyers taking advantage of that motivation. As with all markets, the decline in inventory will eventually help boost demand, as long as too many more homes don't come on the market.
Overall, Los Altos has seen the median sales price rise quarter over quarter since the start of this year going from $1.5M in Q1 to $1.6M in Q2, and $1.7M in Q3. I believe we'll see a small rise in the median for Q4. After that, I think the median will remain flat in Q1 2010 as the market closes out old inventory and new inventory doesn't really start to come on until February. As many of my readers know, I'm not a fan of median prices but under the circumstances, they warrant being looked at because a single low selling home can throw off the average too much.
Here's the original SJ Mercury article:
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Bryan Robertson, CEO | T: 650.799.9951 | Email: email@example.com | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc | 171 Main St #220 | Los Altos, CA 94022