Monday, October 18, 2010

Los Altos Market Performance for Homes Priced $2-3 Million

The good news is that unit sales are up and the average price per square foot are up in this challenging segment of the market. Los Altos home prices have been trending up slightly, especially after this past Spring when many homes priced under $1.5 million sold with multiple offers. The high-end market has had more difficulty but has greatly improved this year.

In 2009, some of the figures are distorted because there were several new or newer homes priced over $3 million that had substantial price reductions under $3 million. Two of these were on Manor Way in the Loyola Corners section of Los Altos. As a result of removing those homes, a more accurate comparison on 2009 and 2010 is shown.

While sales and the average price per square foot are up, the overall average listing price is down about 7%. The average sales price is down about 5% compared to 2009. Does this mean that prices are down in Los Altos? Yes and no. The average price per square foot is up but not enough to counter the overall sales price. So, prices are down but slightly - when put into that perspective. This only applies to this segment of the market. Los Altos general single-family home prices are up when including homes in all price ranges.

I'm seeing more sales activity in Q4 and expect to see a strong finish to the year.

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