By David Blockhus on 1.23.12 - Please leave a comment.
According to Leslie Appleton Young, the Chief Economist for the California Association of Realtors, California’s home sales should increase approximately 2% and the median home price, which dropped 4% in 2011, should be up slightly. Click on CAR’s 2012 Housing Market Forecast for a 2-minute video snap shot.
That’s nice information, but it doesn’t really tell us the true story about what’s happening in our local real estate market. It is a statewide forecast, not a Los Altos or Mountain View Forecast. Below are our local numbers.
Single Family Home Sales In Los Altos – 2011
Los Altos saw 308 single family homes sell in 2011, a 7.8% drop from 2010 (334). One would think that because the number of sales are down that sales prices would also be down. However, this is not the case. Median sales prices were up 6.3% from $1,550,000 (2010) to $1,647,000 (2011). Sales were brisk, with the average days on the market down from 53 (2010) to 40 (2011). Lastly, the list price to sales price ratio was also up, from 98.1% (2010) to 99% (2011). Sellers were more realistic in their asking prices.
Condo/Townhome Sales in Los Altos – 2011
Forty-nine Condos/Townhomes close escrow in Los Altos in 2011. That is up 19% from 2010 (41) and 25% from 2009 (39). The median sales price was also up 5.3% from $760K (2009, 2010) to 800K in 2011. The number of days on the market for condos/townhomes was cut in half from 103 days (2010) to 52 days in 2011. Lastly, the list price to sales price ratio jumped two percentage points from 96% to 98.3%, indicating that sellers are realistically pricing their properties.
The graphs below show the numbers. Note: all data was taken from MLSListings.com our local Multiple listing service provider.
Are you curious to know what that Los Altos home sold for in 2011?
Click on 2011 Los Altos Residential Summary Report for details (address, sales price, size etc.) on the all the single family homes that closed escrow in 2011 in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Are you curious to know what that Los Altos Condo or Townhome sold for in 2011?
Click on 2011 Los Altos Condo:Townhome Residential Summary Report for details (address, sales price, size etc.) on the all the condos/townhomes that closed escrow in 2011 in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Should you have any questions about selling your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 12.7.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are twenty-two single family homes for sale in South Los Altos. Thirteen homes are active listings and the remaining nine homes are under contract. Lower price properties are currently driving our market. We can see this by looking at the average list price for active properties ($2,558,615) and comparing that with the average list price for homes under contract ($1,778,321).
November Home Sales Activity For South Los Altos – Home sales are steady.
15 single family homes (SFH) closed escrow in South Los Altos in the month of November. Since 2007, the average number of SFH sales in November has been 11.
Only four properties had multiple offers and sold at or above their asking price. Properties priced between 1.3 million and 1.6 million continue to receive the most buyer activity.
Click South Los Altos Real Estate Market Update – November 2011 for a detailed 24-month history of home sales activity in South Los Altos.
Are you curious to know what that South Los Altos home sold for?
Click on South Los Altos Residential Summary Report for November 2011 for details (address, sales price, size etc.) on the thirteen properties that closed escrow in September in South Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Median Sales Prices in South Los Altos are inching up:
Year to date, the median sales price for single family homes sold in South Los Altos is $1,540,000. The graph below shows the last seven years of median sales prices in South Los Altos. You’ll note that the median sales prices in South Los Altos have steadily increased since 2009. It looks like we’re back to 2005 – 06 prices.
If you are looking for a quick and easy way to find your South Los Altos dream home, click here?
Should you have any questions about selling your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 11.16.11 - Please leave a comment.
Earlier this month a home in South Los Altos closed escrow. Nothing new or exciting given that approximately 12 homes a month close escrow in South Los Altos each month. What is interesting is how this home was “marketed” and how much money the seller left on the table. Let me explain.
Back in May/June of this year, this South Los Altos home was put on Craigslist as a “for sale by owner” listing for just under 1.2 million dollars. The owner knew that he could sell the family home quickly (“because everything in this neighborhood sells quickly”) and reduce his selling expenses (by not having to pay a listing agent side commission). Selling by owner is a viable option for sophisticated sellers who have the knowledge, time, energy and resources. Unfortunately, the “for sale by owner” route didn’t work out as well as I think the seller would have wanted.
The house sold quickly and closed escrow in early July. However, the sales price of $1,140,000 was substantially below market given the recent comparable sales.
The new buyer-investor did a modest remodel (a flip kitchen – looks nice but not something an owner would put in for themselves, interior paint, patio and landscaping etc.). The home was listed with an Realtor, placed on the multiple listing service and sold in one week for over 1.36 million. I estimate the net gain (after all expenses and fees) to the new owner-investor at approximately 100k.
Had the original home owner’s heirs marketed the home correctly, they would have received more money. Instead an investor bought the home under market and sold it for a substantial profit. It is sad, but a sizeable amount of the investor’s profit was the equity that this family had earned over it’s 30+ years of home ownership. It should have gone to the original homeowner’s heirs, but instead it went to an investor who owned the home for less than 4 months.
Yes, the remodel added value but as all investors who buy a home in order to flip it for profit understand, the big money is earned on the initial purchase and subsequent value is added with any remodeling.
By the way this remodel was very limited in scope relative to the usual flip that happens in Los Altos. Usually an investor will remodel the kitchen (with median-higher end finishes), remodel all bathrooms, change out all windows, add crown molding, change out the baseboards, change out lighting, re-finish the hardwood floors and/or replace carpeting, paint and landscaping.
Two reasons I think the flip was limited in scope:
- Time constraint issues. A complete remodel would push out the date the home would hit the market to late fall when typically there are fewer buyers
- They made a sizeable profit when they bought it “for sale by owner.” Further remodeling would have reduced the profit margin percentages. They could have just painted and landscaped and still made 70k profit.
Lessons Learned:
- “For sale by owner” properties attract buyers who are probably more sophisticated than the average home seller.
- Selling real estate to maximize one’s profit is not as easy as it may appear.
- Get advice from experienced and trusted sources.
- Exposing the home to the largest pool of buyers generally yields better results
- Taking the emotion out of the deal usually yields better results.
- Market timing is important
- Property condition is important
By David Blockhus on 11.4.11 - Please leave a comment.
See below for Los Altos single family home sales data. The statistics detail home sales since January 2006.
By David Blockhus on 10.30.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are fifty-six single family homes for sale in Sunnyvale’s zip code 94087. Thirty-one homes are active listings and the remaining twenty-five homes are under contract. The average list price for the active properties is $959,597. The average list price for those homes under contract is $858,374.
September Home Sales Activity For 94087 – Home sales are steady.
25 single family homes (SFH) closed escrow in 94087 in the month of September. Since 2007, the average number of SFH sales in September has been 28.
Eleven properties had multiple offers and sold at or above their asking price. Properties priced between $900k and $999k received the most buyer activity.
Click Sunnyvale (94087) real estate market update – September 2011 for a detailed 24-month history of home sales activity in the 94087 zip code of Sunnyvale.
Are you curious to know what that 94087 home sold for?
Click on Sunnyvale (94087) Residential Summary Report for closed sales in September 2011 for details (address, sales price, size etc.) on the 25 properties that closed escrow in September. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
The median sales price of single family homes in 94087 has remained fairly steady (at around $930k – $940k) throughout 2011. Lastly the price per square foot has also remained steady at around $520/ft.
Should you have any questions about selling your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 10.12.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are forty single family homes for sale in South Los Altos. Twenty-three homes are active listings and the remaining seventeen homes are under contract. The average list price for the active properties is $1,633,643. The average list price for those homes under contract is $2,029,171.
September Home Sales Activity For South Los Altos – Home sales are steady.
13 single family homes (SFH) closed escrow in South Los Altos in the month of September. Since 2007, the average number of SFH sales in September has been 9.
Seven properties had multiple offers and sold at or above their asking price. Properties priced between 1.3 million and 1.6 million received the most buyer activity.
Click South Los Altos Real Estate Market Update – September 2011 for a detailed 24-month history of home sales activity in South Los Altos.
Are you curious to know what that South Los Altos home sold for?
Click on South Los Altos Residential Summary Report for September 2011 for details (address, sales price, size etc.) on the thirteen properties that closed escrow in September in South Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Median Sales Prices in South Los Altos are inching up:
Year to date, the median sales price for single family homes sold in South Los Altos is $1,523,000. The graph below shows the last seven years of median sales prices in South Los Altos. You’ll note that the median sales prices in South Los Altos have steadily increased since 2009. It looks like we’re back to 2005 – 06 prices.
If you are looking for a quick and easy way to find your South Los Altos dream home, click here?
Should you have any questions about selling your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 9.14.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are eighty-one single family homes for sale in Los Altos. Fifty homes are active listings and the remaining thirty-one homes are under contract. Eight of the homes priced above 2 million (out of 35) are under contract.
August Home Sales Activity For Los Altos – Home sales are stable
28 single family homes (SFH) closed escrow in Los Altos in the month of August. Since 2007, the average number of SFH sales in August has been 26-27. In fact if you go back and track the last 4 years, the year to date 2011 sales numbers are almost identical as those of the last 4 years (at around 190 homes sold).
Ten properties had multiple offers and sold at or above their asking price. Properties priced between 1.3 million and 1.5 million received the most buyer activity.
Click Los Altos Real estate Market Update – August 2011 for a detailed 24-month history of home sales activity in Los Altos.
Are you curious to know what that Los Altos home sold for?
Click on Los Altos Residential Summary Report – August 2011 for details (address, sales price, size etc.) on the twenty-eight properties that closed escrow in August in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Median Sales Prices in Los Altos are Creeping Back up:
Year to date, the median sales price for homes sold in Los Altos is $1,635,000. The graph below shows the last seven years of median sales prices in Los Altos. You’ll note that the median sales prices in Los Altos have steadily increased since 2009. It looks like we’re back to 2006 prices.
If you are looking for a quick and easy way to find your Los Altos dream home, click here?
Should you have any questions about the value of your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 7.19.11 - Please leave a comment.
Most of today’s home buyers and sellers are apprehensive about our real estate market. Everyone is wondering where prices are going. Are they going to rise, drop, or remain flat? If they move up or down, how much will they adjust and when? Ideally, every buyer and seller wants to time the market.
I’d love to say I could predict where the Los Altos real estate market is heading over the next 90 days, 180 days, 1 year, or 3 years, but I can’t. There is one thing that buyers and sellers should strongly consider, the cost of money, otherwise known as mortgage rates. Here is an example why.
According to mlslistings.com (our local MLS provider) the median priced home in Los Altos for the month of June 2011 was $1,660,000. Assuming a 20% down payment and a current jumbo loan rate of 5%, today’s home buyer would pay approximately $7,100 per month for their loan. If rates were to increase by 1 point, the monthly payment (using 20% down) would increase to approximately $7,922. If rates dropped 1 point (not likely), the monthly payment would drop to approximately $6,320. How does home price fluctuations affect a buyer’s monthly mortgage payment?
Using a 5% jumbo loan rate and a 5% drop in the median home price ($1,577,000 purchase price, $1,261,600 loan), a home buyer’s loan payment would be approximately $6,745 per month. At 6%, the loan payment would be approximately $7,527 per month. Assuming that rates stayed the same as today, a buyer hoping for home prices to drop 5% would save $355 per month in mortgage payment, $16,600 in down payment and $83 in property taxes.
However, loan rates are at historical lows. It is probable that rates will increase. If home prices drop 5% and the jumbo loan rate increases 1 point (jumbo loan rates have hovered around 5.6% over the last three years and as recent as August 2008 were slightly over 7%), a buyer’s monthly payment would be approximately $7,527 or $426 more than buying a $1,660,000 home today at 5%. If rates jumped 2 points (not likely in the near future) the monthly loan payment would be $8,345 or $1,245 per month more.
Buyers and sellers should think about the costs of financing. There are many excellent websites with charts, graphs and analysis that help consumers understand the mortgage markets.
Will home prices adjust more than loan rates or will loan rates adjust more than home prices? My best guess is that any negative adjustments in home prices will be offset by higher financing costs. Should prices continue to rise (the median home price in Los Altos for the first half of 2011 is up 7% over that of 2010 and 10% over that of 2009), buyers will miss the boat. At least that’s what I see for the Los Altos real estate market.
Should you have any questions about the value of your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
By David Blockhus on 5.4.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are 65 single family homes for sale in Los Altos Hills. There are 55 active listings and 10 properties that are under contract. Three of the active listings are priced above 10 million dollars. Note: one of the active listings is actually an exceptional lot with smaller home on the property. It really is being sold at lot value. There are also a few “off market” estates for sale that are not currently on the MLS, but are being discreetly marketed off-line (One at 28 million, one at just under 27 million, one at just under 8 million, etc).
We’re finally seeing more activity in the Los Altos Hills market. Prices are still trending downward, but sales volume is picking up.
April Sales Activity in Los Altos Hills
Eleven homes closed escrow in Los Altos Hills in April. This is twice the volume of homes that closed escrow in April in Los Altos Hills when compared with homes sold in April in each of the last three years (4/2008 – 6 homes COE, 4/2009 – 6 homes COE, 4/2010 – 6 homes COE). Four properties had multiple offers and sold at or above their asking price.
Click Los Altos Hills Real Estate Market Update – April 2011 for a detailed 24-month history of home sales activity in Los Altos Hills.
Are you curious to know what that Los Altos Hills Estate sold for?
Click on Los Altos Hills Residential Summary Report-April 2011 for details (address, sales price, size etc.) on the 11 properties that closed escrow in April in Los Altos Hills. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
If you are looking for a quick and easy way to find your dream estate, click here?
Should you have any questions about the Los Altos Hills real estate market, please contact me directly at 650 917-4250 for a confidential conversation.
By David Blockhus on 5.3.11 - Please leave a comment.
According to MLS Listings Inc. data there currently are 92 single family homes for sale in Los Altos. Sixty-two homes are active listings and the remaining 30 homes are under contract. Six of the homes priced above 2 million are under contract.
April Home Sales Activity For Los Altos
18 single family homes closed escrow in Los Altos in the month of April. This is a substantial drop relative to the 12 year average of number of homes sold in April of 30.
Eight properties had multiple offers and sold at or above their asking price. Properties priced under 1.2 million and between 1.5 million and 1.65 million received the most buyer activity.
Click Los Altos real estate market update for April 2011 for a detailed 24-month history of home sales activity in Los Altos.
Are you curious to know what that Los Altos home sold for?
Click on Residential Summary Report for details (address, sales price, size etc.) on the 18 properties that closed escrow in April in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
If you are looking for a quick and easy way to find your dream home, click here?
Should you have any questions about the value of you home in today’s market, please contact me directly at 650 917-4250 for a confidential conversation.
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