December and January were very slow - for two months the Palo Alto housing market was in a dormant state. Only six homes have changed hands since the beginning of the year in South Palo Alto. A year ago at this time, many homes were languishing on the market as buyers stayed on the sidelines, worrying about their jobs, the sharp decline in their 401k accounts, and whether housing prices would ever rise again.
While no one claims the housing market is out of the woods yet, an unusual dynamic is occurring in many communities around the Bay Area and in our own backyard. Buyers and sellers have realized that neither of them will benefit from rising interest rates, and now we have a market with rising inventory and many active, well-qualified buyers looking for houses. Open houses are very busy. Most of this year's sales happened within the last two weeks. Today when we write this article, there are 19 pending sales in South Palo Alto and 21 active listings. Well-maintained, reasonably priced homes in the median price point or lower, sell with multiple offers. One recent sale generated 13.
South Palo Alto is on the lower range of the overall Palo Alto housing market, and today it gets a disproportionate level of activity comparing with the rest of the city. In the entire city of Palo Alto there are 36 "pending sales" and more than half of them (19 as mentioned above) are in our area.
Another motive is an upcoming deadline for the home buyer tax credit. Buyers who want to claim this year's tax credit, which ranges from $6,500 to $8,000, must purchase their home by April 30 and close by June 30. This further explains increased market activity as we approaching the finish line.
Company: Coldwell Banker
Phone: 650-714-4784
Email: etalis at yahoo dot com
