In the month of March, the Palo Alto real estate market saw increases in both the median price for homes for sale and in the median price for homes sold as compared to last year. Median homes for sale price increased 9% over March 2009 and median price for homes sold in Palo Alto for March 2010 ($1,410,000) increased 17% year over year ($1,205,000 - March 09).
As we move into the spring here in Palo Alto, we continue to see an increasing supply of homes for sale compared to the winter months. Overall, however, housing supply is down 37% over one year ago. During the same time period, demand for homes is has increased 23%. This is creating a more competitive environment for Palo Alto home buyers.
Midtown Palo Alto Real Estate Market Update
The Midtown Palo Alto real estate market is seeing an increasing number of above asking price offers resulting on a higher median sold price for homes in Midtown Palo Alto. While the median price for homes for sale in Midtown was $1,258,000 in March 2010, the median sold price was $1,400,000. This graph is a good illustration for comparing sellers (median for sale) and buyers (median sold) expectations.
In Midtown Palo Alto, the housing inventory did not increase in March as it did in Palo Alto as a whole. While the number of homes for sale in Midtown decrease slightly from the February level, the decrease from one year ago is much larger. Inventory is down 62% compared to March 2009. March 2010 saw the same number of homes sold as March of 2009, leaving demand in Midtown Palo Alto unchanged.