Los Altos Home Sales Seasonal Slowdown

The local housing market experienced a major seasonal slowdown toward the year-end, as suggested by a significant drop in closed sales in January.

The drop in both sales and price came after a stable early holiday season, with home sales continuing to be strong in November and December.

According to the latest home sales data, seven single-family homes were sold in Los Altos last month, and one property was sold in Los Altos Hills. They represent a 22 percent and 75 percent drop from the same time last year.

The magnitude of the drop was even bigger as compared to the previous month, when 27 single-family homes were recorded in Los Altos and seven were in Los Altos Hills.

In Los Altos, the median home price in January was $1,170,000, which is 17 percent less than last year. Most of the homes sold were entry-level properties. It should also be noted that buyers were also paying less in relation to the asking price, as suggested by a drop in the percentage of list price received from 99 percent to 96 percent.

The drop was even more dramatic in Los Altos Hills, where only one entry-level home ($1,950,000) was closed in January after being on the market for 145 days.

The market always slows down during the holidays, due to both a lower inventory and fewer buyers looking. While the drop may seem to be alarming, it is pretty much in line with conventional expectations.

With the holiday seasons behind us, more buyers and sellers are gradually returning. Sales are expected to pick up this month. We will know more how well the market is recovering from the seasonal slowdown when the February home sales data come out. Stay tuned!

January 2012 Home Sales Statistics

Single Family Residences

City

Sales

Change from last year

Average Day on Market

Median price

Change from last year

% listed price received

Los Altos

7

-22%

43

1,170,000

-19%

96%

LAH

1

-75%

145

1,950,000

-30%

89%

Source: MLS Listings

Information deemed reliable but not guaranteed.

Winnie Yip Fong, a Los Altos resident and a local realtor, prepares this monthly home sales report to keep readers updated of the local housing market. Email her to winniefong.realestate@gmail.com for any suggestions or comments. You can also follow her on www.twitter.com/SVHomes for more local real estate updates.