Saturday, July 12, 2008

Here's another great article from Yahoo Finance talking about how real estate in high-end communities is doing very well in contrast to the rest of the area, state and country.

http://biz.yahoo.com/bizwk/080710/jul2008bw2008078555230.html?.&.pf=real-estate

Los Altos Hills is mentioned but not Los Altos itself which is a big mistake on the reporter's part as Los Altos is doing very well so far this year.

Friday, July 11, 2008

Strong areas doing well - yeah Los Altos!

I like this article that Sue Macallister had in today's SJ Mercury News. She points out that high demand areas as seeing no price declines or actually going up (as Los Altos has) and that the drops everyone keeps hearing about come from other areas.

http://www.mercurynews.com/business/ci_9848725

The article fails to be specific about the areas that have seen the greatest declines. They are where first-time homebuyers were getting into homes they couldn't really afford (no matter how low the price seemed). Those areas typically have prices in the $500-700K range, have fair school districts and suffer other issues.

Los Altos is a prime location. Inventory has fallen in recent weeks and continues to stay relatively low. Well priced homes sell fast and go over their asking prices. A good example is 295 Vernal Court in North Los Altos. It sold after one weekend on the market and for nearly $100K over the asking price.

Tuesday, July 1, 2008

Los Altos & Hills Prices Up - SJ Mercury 6/29

As entertaining as it is to get clients who ask about declining prices and the search for bargains in Los Altos, I offer this article as further evidence that no such declines have occurred or are likely to occur.

http://www.mercurynews.com/wherewelive/ci_9735111

I'm not trying to make it sound like it is impossible for prices to drop in Los Altos or that getting a "good value" is equally difficult. What I keep trying to reinforce is that sales volumes have stayed low and that low supply combined with strong demand continues to push prices up.

You will see lots of price reductions on homes that have been on the market for a while. This is almost always the seller having unrealistic expectations of what their home is worth and an agent who won't push back. The homes offer an opportunity to get a "good value" by making an offer at or below the asking price.