Prices Are Rising In Most Areas
Most cities in our area saw home prices increase compared to last year. Cupertino homes are now selling for about $3.2 million (up 17%), while Palo Alto saw a 25% jump to $4.2 million. Mountain View and Sunnyvale both increased by about 17% as well. Not all areas saw increases, though. Menlo Park and Los Altos Hills dropped by 10%, and Atherton saw a dramatic 64% decrease (though with only 3 homes sold, this could be due to the specific properties that happened to sell).
Open Houses and Bidding Wars
Since the new year began, open houses have been drawing strong attendance:
8-15 visitors for condos and townhomes
10-30 visitors for single-family homes
We're seeing serious bidding wars in cities like Palo Alto, Los Altos, and Sunnyvale. It's important to note that some of these properties are intentionally listed below market value to create competition. Working with a local realtor who truly understands current market pricing can help you avoid the pitfall of underbidding on properties that weren't reasonably priced to begin with.
The number of Sales Varies
Some cities saw more homes selling - Redwood City had 23 sales (up by 7 from last year) and Santa Clara had 24 sales (up by 9). Meanwhile, other areas like Menlo Park and Palo Alto saw fewer homes on the market, with sales dropping by 9 in each city compared to January 2024.
Time on Market Changes
Homes are selling much faster in Cupertino (only 5 days on market compared to 11 last year) and Atherton (66 days compared to 127 last year). However, in Los Altos Hills and Menlo Park, homes are taking longer to sell - 79 days and 35 days, respectively.
What about Interest Rates
Inflation went up again in January, reaching its highest level since June. This means the Federal Reserve is unlikely to cut interest rates soon. Fed Chair Jerome Powell recently said that with inflation still high and jobs plentiful, there's no rush to lower rates.
Some experts worry that possible new tariffs could make inflation worse, though others disagree. Powell will remain in his position until May 2026.
What This Means for you
Buyers should prepare for continued competition by having financing secured, setting realistic expectations about what their budget can buy in this market, and being ready to act decisively. Consider areas with longer market times for less competition and focus on location fundamentals over cosmetic issues.
For sellers, strong demand is leading to multiple offers in many areas. Home presentation is crucial—many buyers are stretching financially and prefer move-in ready properties. Engaging a local realtor can help you assess your home's condition and identify the most impactful pre-listing improvements. Well-maintained and properly presented homes tend to command higher prices in this competitive market.
Connect with Wendy at [email protected] for personalized insights and strategies to make the most of our current market conditions.
(This report covers from Redwood City to Cupertino. Redwood City and Menlo Park fall under San Mateo County. Palo Alto, Mountain View, Los Altos, Cupertino, Sunnyvale, and Santa Clara fall under Santa Clara County. Data include single-family home sales only. Data is from CA MLS and is deemed reliable but not guaranteed. Private sales are not included.)
Posted on January 13, 2025
