Well, my predication of a quarter point rate drop came true. So, what does that mean for Los Altos real estate? I expect appropriately priced homes under $2.5 million to sell relatively fast, even during the winter months because the Fed is done with interest rate cuts and buyers will start to believe that we've "hit bottom".
As of today, there are 51 single-family homes on the market in Los Altos which is down from 53 last week. There are five (5) new homes on the market since last week and of those, four (4) are priced under $2 million. One home that went on sale at $1.662 million sold in one day. So, we should see inventory drop under 50 units this week and once that happens I think buyers will see that what they have to choose from is limited and that if they like something, they should buy it now!
What does appropriate pricing mean? In Los Altos it means that if the comparable sales in your neighborhood are $1.5 million, don't price your house at $1.7 million not matter how much nicer you think it is. Why, you say? Bryan, aren't you going to sell my house under market value?
NO! The key to pricing is to make it attractive to as many potential buyers as possible, even the ones who aren't really going to make an offer. Why? Because perception is reality. If the desirability of your home appears high, then it will be high and the winning offer will subsequently be high.