SALES ARE UP
A total of 266 homes priced at $1 million or more were sold in Silicon Valley in June, up 24% from the same time last year. The top 3 cities were San Jose (54), Los Altos (44), and Palo Alto (38). Relative to available inventory, Los Altos is the best market for sales at $1 million or more. It is rare to find a home in Los Altos priced under $1 million and if you do, it's a shack (literally) on a tiny lot.
...AND INVENTORY DOWN
Available homes have been dropping steadily for the past two months as we go into the slow August period. We should see more inventory in September. However, most homes are selling in a couple of weeks with good offers.
...SO WHERE'S THE CRISIS?
In the minds of the media and buyers dreaming of getting a deal. There is no short-sale or foreclosure crisis in Los Altos or Los Altos Hills. I can count on two hands how many homes actually became REOs in the past YEAR! The market is too strong to let the homes go to the bank. There have been a small number of short sales.
While the real estate market may be waning in some areas of the country, Silicon Valley and Los Altos specifically is strong. As predicted in January, I expect demand to remain strong with prices balanced trending slightly up.
If you're considering buying at this point, your best strategy is to look for homes that were priced high and have been on the market awhile.