Los Altos real estate market trends June-August 2013
Home sales have been steadily increasing since January and that trend is reflected in the most recent 90 day period. While August is typically slow, prices have continued to rise as inventory remains extremely tight. With the limited selection of homes, most notably an acute shortage in North Los Altos, sales have actually declined quite a bit with only 26 homes sold so far in August compared to 39 in June and 33 in July. The lack of inventory is a normal seasonal issue as the market slows this month
Days To Sell Steady, Overbids Dropping
A major concern of sellers is how long they're on the market. Most Los Altos homes typically sell in their first 10 days but the average is higher due to high-end sales that skew the figures. In August the average days on market is 23, holding steady from July. Both those figures are up a bit from June which again is a very normal seasonal trend.
The sales price to list price ratio has been steadily dropping as well. It's down to 104.2%, which means that while overbids are still the rule of the day they're dropping a bit from the fever pitch we saw in spring. I see this leveling off as we go into the late Summer and Fall seasons. However, as always, good homes, well priced will still command a premium even in a "slow" market. My advice to buyers is not to try and find a "deal" but to make offers in line with comps as much as possible. You'll stay in line with the market which is what it takes to win these days.
FSBO, Expireds, and Other Dreams
There are some buyers still looking for REO (bank owned), pre-foreclosure, short sale, for sale by owner, and expired listings to get deals. My advice is: don't. I can count on 1 hand how many investment grade deals have taken place in Los Altos in the last 75 days. I'm aware of a few properties that could be, but the sellers aren't realistic. If you want something to buy and build on, keep an eye on the open market and bid accordingly. While there are a few off-market deals floating around, the sellers tend to want market prices so you won't get a deal per se but you will avoid overbidding.
Looking to buy a home in Los Altos? Call me and I'll connect you with one of my agents in the Los Altos market.
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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