How much is my Palo Alto, Ca home worth?

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Real Estate Agent with (408) 425-1601 CA bre 1519182
https://activerain.com/droplet/4Xn6

                                  Sam Shueh

 Realty One Group

                                                 Silicon Valley, CA

 

This area encompass Palo Alto, CA. It is known for its excellent schools and Stanford University and birth of Silicon Valley. With many recent high technology like HP, Quora, Tesla and start-ups. The homes are close to high technology job centers and public schools are exceptionally good.                                      

 Palo Alto

                         Palo Alto in relation to Santa Clara County

                  

                   Single Family homes: 3 br+, 2 bath+ (1300-2000 sf) 

                                                    Total listings SFH = 45

                             Inventory: 0.8 month (2.5 month is healthy)

                              unemployment rate=2.5%

                              Sold/Asked=101.4% was higher until 2015

                              Marketing time=19 days

                          

                  $2.413 M (Apr-June 2016)   $2.395 M (1 yr ago) +0.8%

                  $1,418/sf                          $1,468sf                  -3.4% 

Since 2014 the teens (+17% and +10% price increase) enjoyed during 2013 through 2015 have come to a crawl. Prior to 2013 it was from no gain to +11% price increase. The home price appreciation rate is awsome.  The old timers did not pay as much a few decades ago.

 

Consider this, if one wants a "typical" home bought at $2.5M with 20% down payment at 3.75% mortgage interest the monthly PITI is over $8,500. The minimum required annual income for the 80% mortgage is over $344,000. That does not include car payment, credit cards payments or any other loans. Applicants need to have $500,000 savings in the bank for the down payment. It is hardly attainable even with a dual income family. I have seen a mortgage as high as $6,000,000 and almost all have mortgages are $1 M and up. The cash buyer are not as often these days as previous years and are often from Pacific Rim for children schooling.

                                                Palo Alto Avg sold home prices

                                                  Historical  avg sold home prices in Palo Alto (1300-2000 sf)

 

We are having a fantastic real estate boom since last quarter of 2011. It has been over 5.5 years. After this summer, if the local economy can not support the momentum required, the home prices can stall or slide slightly. But Palo Alto area is always desirable as many new companies CEOs live in the area who will not consider relocate to a cheaper location.

 

This may not be a bad thing as the neighborhood home prices are overheated too long. $1,400 per square feet is a very challenging level. Not long ago the most expensive areal cost was on top of Victoria Peak in Hong Kong and parts of London. Below shows the historical real estate market momentum using 1 year moving average. Note that it has tapered off somewhat since 2015 third quarter. If interest rates or employment changes we can expect it go lower affecting home value. The market momentum seems to suggest there is a down swing that the market can not sustain at this level.


                       Real estate upside  momentun


                                       
Palo Alto SF Home price momentum

 

SOURCE:

 West Silicon Valley homes Q1 2016 (West Silicon Valley Home Prices)

 Silicon Valley West side homes (2016 quarter 1 West side Silicon Valley home)

 Shueh, Sam    (Sam Shueh Blogs)

  Shueh, Sam     (Sam Shueh Realtor website)


  

Sam Shueh

I've called San Francisco South Bay home for over 30 years. We love this area and all it has to offer, and I enjoy sharing what I know about homes.  I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call. ( Four-O-Eight)  425-1601  Sam Shueh Realtor site

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Rainmaker
658,799
Lauren Selinsky Broker CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Wow $1400.00 per sq ft is a lot!!! I had no idea. I think my son, when the day comes... should stay on campus with those prices. Great info for Palo Alto area.

Jun 24, 2016 03:53 PM #1
Rainmaker
3,237,555
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Pretty pricey real estate in this market !

Jun 24, 2016 10:14 PM #2
Rainmaker
1,006,705
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Lauren Selinsky CRS ePro 

It was close to $1500/sf.  Yes, there are $10M home near the University City near its campus.  Rent is $5K to 10K in some cases. Won't rent to students- even iof they don't party. The school is exaggerates as hope that grads all become CEOs at young age. I was there and still work as a humble realtor.

Have a great weekend.

Sam Shueh

Jun 25, 2016 01:17 AM #3
Rainmaker
1,765,943
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Hi Sam - Palo Alto has been a prime location for as long as I can remember--which is quite a while. It will remain so for a variety of reasons, but there's an ebb and flow to prices. For instance, on 6/21 I took a look at price reductions in various peninsula and Silicon Valley cities.

Palo Alto had 51 single family homes listed on our MLS; 21 of those had experienced price reductions

Interesting stuff.

Jun 25, 2016 01:46 AM #4
Rainmaker
658,799
Lauren Selinsky Broker CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

Palo Alto is so beautiful too. No wonder it is also pricey.~

Jun 25, 2016 07:59 AM #5
Rainmaker
1,118,644
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Sam Shueh - Great information for any Palo Alto, CA home owner who is wondering what their home may be worth right now!  I hope they call you for more help!

Jun 25, 2016 08:33 AM #6
Rainmaker
2,751,598
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I'd like to know how much Mark Zuckerberg's house is worth in Palo Alto! That would be nice lol

Jun 29, 2016 04:47 PM #7
Rainmaker
2,751,598
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I agree that it's very good information in this area should do fine, in my opinion

Jun 29, 2016 04:47 PM #8
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Rainmaker
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Sam Shueh

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