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Midtown Palo Alto Real Estate Market Report - February 2010

By
Real Estate Agent with Keller Williams CAL BRE #01393647

Number of Homes for Sale vs. Number of Homes Sold - Midtown Palo Alto - February 2010

In the Midtown neighborhood in Palo Alto, we have seen an increase in sales activity in the month of February. Both the number of homes sold and the number of pending sales increased compared to February 2009.  Homes Sold are up 45% and Pending Sales are up 100% compared to last year at this time. At the same time, the number of homes for sale decreased by 45%. The months of homes for sale inventory has decreased dramatically during this same time, down from 8.5 months of homes available in February 2009 to 1.2 months available this February.

 

Median Home for Sale Price vs. Median Sold Price - Midtown Palo Alto - February 2010

During this time of decreasing inventory, the median price of a home for sale is down 11% compared to a year ago. At the same time the median price for a home sold in Midtown Palo Alto during the same time period is up 2%. This illustrates the competitive environment that is created for buyers of Midtown Palo Alto real estate.

Median Sold Price - Midtown Palo Alto - February 2010

The median price for a home sold in Midtown Palo Alto in February 2010 was $1,505,000. This is a 2% increase over February 2009 when the median price was $1,476,200.

Recent Homes Sold in Midtown Palo Alto

You can find additional information on the real estate market, including recent home sales in Midtown Palo Alto here.

California Real Estate Market

In California as a whole, sales of single family homes in January 2010 (latest available data) were down 10.6%, but the median price was up 15% when compared to 2009. For condo sales during the same time period, the number of sales was up 19.2% and the median price was up 12.4% when compared to the previous year.

For the Santa Clara region, the number of sales for January 2010 was down sharply from December, but still up 1.5% over January 2009.  The median price for the region was up 16.7% in January over last year.

(Data from the California Association of Realtors)

National Real Estate Market

According to the National Association of Realtors, January 2010 sales (the latest month for which data is available) fell but are still above levels seen a year ago. The number of homes sold nationally in January was down 7.2% from December, but 11.5% above January 2009 numbers.

Nationally, the number of houses currently on the market is down 9.6% over one year ago. But when you look at the number of months of inventory available at the current rate of sales, the inventory has increased to a 7.8 month supply in January 2010 from a 7.2 month supply in December 09.

Lawrence Yun, NAR chief economist, said there is still some delay between shopping and closing that affected current sales. “Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”