Sometimes it feels like everyone in the Silicon Valley put buying a home at the top of their New Year's Resolutions. Unfortunately for buyers, it would appear that not as many people put selling a home at the top of their New Year's Resolutions. This is especially true in certain markets like Palo Alto, CA.
When you have many more buyers than sellers the prices go up. In this market it is not just up a little bit but the increase in price resembles a hockey stick. This has created a strange market where prices have just sky rocketed but it has happened so fast that appraisals are still back in the dark ages. So what does that mean for a buyer?
It means that you have to a great deal of cash in order to win over the other 10 plus offers. If you really want the house you better have all cash. Or at least act like you have all cash and put in an offer with no contingencies! Yikes! This feels so late 1990's....
Feb 2012 Palo Alto, CA Single Family Homes Sales *
24 homes sold
Average list price just under 2,000,000
Average sales price just over 2,080,000
Average days on the market- 39 days
Closer look at the numbers
25% of homes sold for 200K over asking, one house sold for 605K over asking price
38% of homes sold for 90K or above over the asking price!
This is what the market looks like 
* Data from MLSListings, Inc. reliable not guaranteed
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