Palo Alto Real Estate Market Activity Surges in July

July real estate market activity demonstrated that Palo Alto continues to be an unbelievable seller’s market.  Despite rising mortgage rates and continuing uncertainty about the economy, the median sale price rose to $1,928,000, a 3.4 percent increase from June 2013 and a 14.1 percent increase from July of last year. 

Out of 41 single-family homes sold in the whole city, 23 were located in South Palo Alto and Midtown.  All but one of these homes were sold at or above asking price.

A house at 3197 Louis Rd. was sold for $1,767,000, $518,000 above asking price (41.5 percent above asking price).  Five other properties were sold at $400,000 or more over the asking price and three others at $300,000 or more.

In July, 47 new contracts were accepted, a 51.6 percent increase from June when 31 purchase contracts were ratified.  During the same period only two properties were taken off the market, confirming our belief that market activity is currently limited only by the number of homes available for sale (eight properties were taken off the market in June).

We continue to predict the demand for housing in Palo Alto to outpace the supply: these market trends are supported by the strength of Silicon Valley’s economy, from the growth of established technology companies to record-setting levels of venture capital and startup activities.

Month, Year    Listed    Sold    Median Price    DOM
April 2013          57          43        $2,200,000          13
May 2013           53          44        $2,100,000          20
June 2013          37          29        $1,865,000          11
July 2013           47          41        $1,928,000          12