Wednesday, December 29, 2010

Los Altos Market Update for December 2010

In Los Altos we've had 29 closed sales in the month of December as od December 28th.  That up from 25 in December 2009.  The average selling price was $1,589,705 which is a 4.5% decrease from December 2009.  There are still pending sales so this is an excellent indication of the strength of the Los Altos real estate market which continues to lead the local recovery.

The high-end, defined as homes priced over $2 million, saw four sales between $2 and $2.425 million.  One sale that started as a high-end listing with a list price of just under $2.5 million sold at $1.95 million which had an impact on the overall average for the entire market.  While the high-end market continues to do well, a few homes seem to get priced too high.  That property started at nearly $2.8 million.

Another weight on the overages was a low-end sale under $1 million (an extremely rare event in Los Altos) which sold at $820,000.  Another sale right at $1 million also helped pull the averages down.  It's not uncommon to see a lot of bargains get sold at this time of year but they tend to skew the numbers.  Los Altos rarely sees sales under $1.3 million in a single family home.

Over bidding is coming back strong with 9 homes selling for 100% or more of their asking price.  That's a really good sign that the market is strong going into the end of the year.  Those homes were across the board from the low-end to the high-end so there isn't any one market segment showing signs of strength.

The average days on market was reasonable at 55.  Current inventory is low and there have been several expired or cancelled listings in the last 3 weeks.  I know for certain that many of those will come back on the market but not untill well into 2011.  Open house activity has been good going into the holiday season and offers are being written so we can expect this strength to continue in January.  I'll provide a final December update next week.

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