October was a great month for the Los Altos Hills real estate market. One sale over $8 million has definitely skewed the numbers higher across the board. There were only 8 sales but that's actually more than normal so even more good news!
Sales Over $2 and $3 Million
There were 3 sales over $2 million and each was very close to their asking price. There was 1 sale over $3 million and it was also very close to its asking price. Those are critical for the stats in Los Altos Hills because the market in the $2-3 million market band has had trouble still this year. One month is not a trend but it could bode well in establishing 2010 as a turning point in the high-end market of Los Altos Hills.
Averages Doing Well
The average listing and sales prices were $3.4 million and $3.01 million respectively. While it would appear from those numbers, which are higher than average, that homes are getting 10% discounts, that's not true. The home that sold for $8.2 million was listed at $10.9 million so it's skewing the numbers. In fact, all the other homes sold for close to their asking prices. This would seem to indicate that homes priced well are in fact getting solid offers.
The average days on market was also high at 102 but again this number is skewed by the 524 days on market that the $8.2 million house sold in. Los Altos Hills has seen the average days on market getting stronger recently so this will set that trend back a little.
Price Per Square Foot
This is an often quoted figure by people shopping in Los Altos Hills. However, the vast majority of buyers use the figure incorrectly. You can't compare the price per square foot for a 3000 SqFt home to one with 6000 SqFt. It's not a linear progression and never has been. Other factors including comparing new, old, and remodeled homes also skew this figure. This month has some good examples. the $8.2 million home sold for $751/SqFt while a home that sold for $1.875 million was $1257/SqFt. One was old and small, the other newer and much larger. Buyers need to get a proper market analysis to get a realistic view of how well a home is priced.