The real estate market in Los Altos Hills has been hit hard in recent years. Prices came down, inventory dropped, high-end luxury homes weren't selling and buyers were nowhere to be found. The general impression of buyers is that they can completely drive home prices in Los Altos Hills. While that was true in 2010 and earlier, it is no longer the case in 2011. The market is becoming much more balanced with overall sales increasing and the retrun of multiple offers on Los Altos Hills homes priced mainly in the $2-3 million range.
As of today there are 16 single-family homes pending sale in Los Altos Hills ranging from entry-level properties to high-end luxury estates. The average listing price of the homes is just under $2.8 million. Of the homes that are currently pending sale, 3 of them had multiple offers - about 20% of the market. The number of offers is less than properties in Los Altos, usually 2-3, but they are getting more competitive. In some cases the offers are driving prices up but in most cases it is simply driving better terms. Buyers are coming in with well-financed offers (not necessarily all cash) with brief or zero contingency periods. That's risky but if you want a particular home in Los Altos Hills, be prepared to make such an offer.
At the very high-end of Los Altos Hills luxury homes, where estates are priced at $5-25 million, buyers are coming in with verbal and written offers with activity much higher than it has been in recent years. The homes currently pending include one home priced over $6 million and one other priced just under $5 million. There has been other homes sold in the same price range. Inventory that had been on the market in the last 2 years is coming back and getting sold quickly. While prices are still negotiable, many Los Altos Hills mansions are getting priced in line with recent activity. That is resulting in more sales and at higher prices with multiple offers. One important point is that multiple offers are not necessarily coming in at the same time.
Los Altos Hills mansions are coming back on the market, including the newest listing on Adobe Creek Road, and they're getting interest. My recommendation for buyers of mansion and estate properties is that if you like something, put an offer in quickly. The number of buyers has grown and one way to avoid overpaying in a multiple offer situation is to move quickly.
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Bryan Robertson, CEO | T: 650.799.9951 | Email: firstname.lastname@example.org | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc | 171 Main St #220 | Los Altos, CA 94022