How much my home in Palo Alto is worth?

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Real Estate Agent with (408) 425-1601 CA bre 1519182
https://activerain.com/droplet/4XH8

                                               Sam Shueh

                                                                               Realty One Group

                                                                      Silicon Valley, CA

 

It encompasses west part of Santa Clara County with Palo Alto schools. The postal zip codes are 94301, 94302, 94303 than 67,000 residents. These single family homes were mostly built after 1940s. The gross living area is bracketed from 1,200 to 1,999 sf with a minimum 2 bedrooms and at least 1 full baths or so. This size range is necessarily to compare similar homes prices in different neighborhoods. There are also in recent years new modern homes constructed by demolishing old homes and they can ask as high as $17.5M for a 5300 sf mansion.

 Image result for The Hoover tower


Hoover Institute, Palo Alto, CA
 

                                                                         Total listings SFH =  12                                                                      Inventory: 1.0 month (2.5 month is healthy)

                                                 unemployment rate= 2.5%

                                                          Sold/Asked=       102.5%

                                                        Marketing time=  22 days

                                                        Avg home(1200-1999 sf) 

      2014                               2015                                 2016                                   

    $2.186M                      $2.561(Jul-Sep)                $2.302M                                           

     +22.7%                        +17.8%                               -6.5%                               

 

   $1,352/sf                       $1,563/sf                           $1,438/sf

     +21.3%                        +15.6%                               -8 %

 

The longest DOM during 2016 is the same like during the Great Recession meaning there is a demand anytime of an economic cycle always a sellers market.

 

                               SFH ($/sf) for size 900 sf -2000 sf - Palo Alto sold price

 

Other sources using median home prices without limiting large or smaller size homes also suggest similar trend during 2016. It is selling less than a year ago. 

 

The % accepted vs. listed price shows it is still a seller market. We have been having a robust steep price increase since last quarter of 2011 or over 6 years now. Do home prices stay at this level. About 90% think it will go up in Palo Alto even more. 

 

I have seen lower number of offers this year than in the past.  The reason is strong economy and low unemployment rate in the area has one of the lowest. The low interest makes sense to own while enjoy have school age children attending top public schools in the area. The GPD in San Francisco Bay Area is 17th among all countries at $760B. With Silicon Valley being third highest globally (3rd globally in gdp per capita) at $80,000. There is tremendous momentum for future growth.

  

The issues facing many high technology workers is housing affordability.  A typical $2.3 M modest entry level home, one needs to cough up $460K for a 80%-30 year jumbo mortgage which means ~$11,450 monthly is spent on mortgage (PITI) with a 3.85% jumbo loan. The minimum combined income to be eligible is $305,000 assuming one does not have major debts. Of course majority will put high down payment. Anyone got $3M can pay cash for an typical average home in this town. Use it for downpayment and get a loan to enjoy a better quality home.

 

 

Top employers nearby Palo Alto: 

1  Facebook

2  Microsoft

3  Linkedin

4  Palo Alto Networks

5 Stanford University

It is home for several software, virturalization, academia.

Current homes on the market or into contract:

$1-$1.5M   4

$1.5-$2M   8

$2-$2.5M  17

$2.5- $3M 13

$3-$4M    12

$4-$5M      5

$5-$6M      6

$6-$10M    4

$17.4M       1

 

RENT: 

1 br, 1 bath expect to pay $2700-3200/month

2 br, 1 bath etc                    $3000-4000/month

Single Family 3/2  expect to pay high $5,000-6,500/month

  

SOURCE: 

Palo Alot Home prices (Palo Alto home prices)

Shueh, Sam  How is my Silicon Valley home worth? (Silicon Valley Home Values

Silicon Valley Real Estate July 2016 (San Jose area real estate update

Shueh, Sam    (Real EstateBlogs

Shueh, Sam    (My Website)  

 

Sam Shueh Realtor    


  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

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Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

always a good question to be able to answer! I hope you get some business from these posts!

Nov 11, 2016 11:53 AM #1
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

“It’s all about perception in the Bay Area.” 

San Francisco is an international city that is known around the world. Geographically we are in “God’s Land”. The Bay Area is trending- people are making a good living and thats why we have traffic. The real estate market is going to be rebalancing. This does not mean we are not going to be in a recession here, she says something else is going on. Inventory is growing, pricing will start declining, homes will be staying on the market longer. High-end is going to go down and low-end is going to get hot. Millennials are wanting to buy and are looking for newer homes and they want it all. Carole says the homes that need lots of work will be sitting on the market and will require negotiating to get them sold.

Nov 12, 2016 10:31 PM #2
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Rainmaker
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Sam Shueh

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