Palo Alto real estate update

October 23, 2009 by · Leave a Comment
Filed under: California, Home Searches, United States 

palo-alto-mountain-club-in-boquete“After four-straight months of price gains, the median sales price of a Bay Area home fell by $35,000 from July to August while the number of homes sold also fell on a month-to-month basis,” reported Eve Mitchell of the Silicon Valley Mercury News on September 17, 2009.  Fortunately, Palo Alto real estate has not been forced to bear the brunt of these massive price drops.  In fact, Pete Carey of the San Jose Mercury News reported on August 11, 2009, that “home values in Palo Alto were off only 3.6 percent for the year.”

However, the article mentions real estate Jeff Barnett’s predictions for what the future holds.  Barnett claims that “high-end markets have just recently kicked in and even the more affordable parts of these pricey areas have not seen steep declines.”  While there haven’t been large wholesale price reductions on some of Palo Alto’s most expensive homes, there will definitely be price cuts in store for even the largest pieces of real estate.

Regardless of declines in sales and price cuts affecting many Palo Alto homes for sale, the Coldwell Banker Home Price Comparison Index released on September 24, 2009 listed Palo Alto as the “fourth most expensive for homebuyers.”  Interestingly, the report includes several other California cities that follow Palo Alto.  San Francisco is ranked sixth while San Mateo is tenth.  The report also claims “Southern California has five markets in the top 10: La Jolla, Beverly Hills, Santa Monica, Newport Beach and Palo Verdes. “

According to an Associated Press article published in the New York Times on September 23, 2009, real estate in Palo Alto is like that of Beverly Hills and La Jolla where properties can command a premium for their sunny weather and more importantly close proximity to a large city.  For this reason, the article pinpoints Palo Alto’s median house price at $1,489,726.  Interestingly, a house of similar size and quality built in Michigan might only cost a shade over $100,000.  With land still holding a premium value to most prospective buyers, it is unlikely Palo Alto will continue to suffer from reduced house prices into the future.