The Los Altos real estate market is as strong as ever with the average selling price in March up to $2,032,075 and 37 single-family homes sold. That's up from 15 homes sold last month and up from 28 sold in March 2011. Prices are up and multiple offers have become standard as the median is now up to $1,915,000.
With only 1.8 months of inventory, the market is strongly biased to sellers. The sales price to list price ratio is one telling sign of this. In March 2012 the ratio was 102.7%, down a bit from 104.2% in February but still high. This means that offers over asking dominate the market. Another factor is that days on market is also low. Most sales are happening within one week on the market, with a few homes taking up to 2 weeks (depending on price and location). Low inventory is partially due to some sellers waiting for "The Facebook Effect" to occur - buyers with Facebook IPO money to get into the market.
Some of the major sales last month in Los Altos include 1310 Villa which sold for $3,450,000 and 307 Verano Drive which sold for $3,395,000. They were two of four sales that closed in March over $3 million. What's more interesting is five sales in the $2.4-2.6 million range. This is a major tier for builders and was a barrier in prior years. The increase in activity indicates more "move up" buyers who are buying larger, quality homes without pushing the top tier too far. If sales continue to hold in this price range, the overall market should continue its strong climb.