As with most of the Bay Area, the real estate market in Palo Alto is extremely strong. As has been the case for the year so far, most homes are selling within a few days of coming on the market. They're also selling at or above the asking price. The exceptionally low inventory combined with steady demand has made buying homes difficult to predict. While some properties command substantial premiums, others get moderate interest. This report covers single-family homes only - not condos or townhouses.
- The average selling price in May was $2,364,420 which is down sharply from last month.
- Days on market was 15 compared to 17 last month. More sales at lower prices is behind this.
- Months supply of inventory as 1.8 compared to 1.6 last month. This is still a very tight market.
- There were 53 new listings and a total of 45 sales of single family homes.
Off-MLS Listings Activity: The amount of off-market activity has actually slowed a bit overall but is still definitely present. While this presents opportunities for buyers, sellers have been (as always) advised that sales via the MLS and the open market are still the best way to command the highest price.
Cash Buyer Activity: Cash buyers still constitute a substantial portion of the market and are preferred over buyers with financing. However, as always, better terms can still enable a buyer to win the negotiations. My suggestion for any buyer is to understand the optimal terms for the seller and appeal to those needs as much as possible. Cash buyers in many cases are not necessarily the highest price or best terms.
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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