Los Altos Home Prices Rose in July, But Sales Are Slowing

The latest home sales data from July present a mixed picture of the local housing market.

While the median home prices in both Los Altos and Los Altos Hills continue to rise on a year-to-year basis, the market in Los Altos seems to be slowing down, as suggested by a drop in sales.

In Los Altos, 26 single-family homes were sold last month. It was 33 percent less than the same time last year and 38 percent less than last month. The median home price was $1,622,500, representing a nine percent increase from last year but a two percent drop from last month.

One positive—and important—note is that July was the first time since last August when buyers on average paid more than the list price to buy a home in Los Altos. The average day on market has also dropped to 21 days in July from 29 days in June.

The mixed indicators suggest that buyers in Los Altos were motivated, but continued to be discriminating. Fewer homes were sold, but homes that were priced right and marketed effectively did manage to draw multiple interest and were sold within a shorter period of time. Many of the homes were sold with multiple offers.

In Los Altos Hills, the picture was in general positive. In July, 11 homes changed hands there. It was 22 percent and 10 percent more than last year and last month, respectively. The median home price was up by just under six percent from last year, and 18 percent from last month. The average number of days on the market also dropped significantly.

Unlike Los Altos, buyers in Los Altos Hills on average paid less in relation to the asking price. It is probably because more higher-end homes were being sold. Five out of the 11 homes were sold at over $3 million, and they were all closed at under the asking price, some by as much as 10 percent.

The local housing market continues to be strong since late spring. A drop in sales (in Los Altos) in July could be an early sign of a seasonal slowdown. It is also important to note that the inventory is dropping in both Los Altos and Los Altos Hills.

We have yet to see what kind of impact the recent correction in the stock market may have on the housing recovery, and how much of that will be offset by the historic low mortgage rates. We should be able to answer more of the above when the August home sales report comes out next month. Stay tuned!

July 2011 Home Sales Statistics

Single Family Residences

City

Sales

Change from last year

Average Day on Market

Median price

Change from last year

% of list price received

Los Altos

26

-33%

21

1,622,500

9.6%

100.75

LAH

11

22%

45

2,625,000

5.8%

93.07

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.