RECAP OF 2023
Number of sales down sharply; 22% since 2022 and 46% since 2021
Average and median prices almost unchanged
Average and median prices each over $4 million for third year in a row
54% sold over list price (compared to 60% in 2022)
Homes sold quickly; 71% in 2 weeks or less
NUMBER OF SALES
As in all surrounding cities, sales were down dramatically the past two years from the record-breaking highs of 2021 during the pandemic. There were 209 single-family homes reported through the Multiple Listing Service as sold in 2023, a 22% decline since 2022 and a 46% decline since 2021.
In addition to the single-family home sales, there were 51 condo/townhome sales – an 11% increase from 2022 but a 34% decline from the record high volume of 77 in 2021. If you would like further details on condo/townhome sales in 2023, which are not included in this report, I would be happy to provide them to you.
The number of new listings, at just 260, was the lowest by far on records dating all the way back to 2000. As a point of reference, prior to 2013 there were 450 to 600 new listings per year. This steady decline of new listings has been a factor in the steady increase in prices since then.
PRICES
Following 2022’s record high prices, 2023 had the slightest decline in the average price settling at $4,374,574 for the year. This was well above $4 million for the third year in a row. The average price was also quite consistent throughout the year with little fluctuation between the first half and second half.
The median price, at $4,100,000, was also just slightly lower than the record high in 2022. It too remained above $4 million for the third year in a row. For the median price, there was in fact a change between halves with a first half median price of $4,001,000 and a stronger second half at $4,251,000. This bodes well for going into 2024.
48 homes, or 23%, sold for $5 million or more. The highest end of the market was strong with 8 sales for $7 million or more, including 1 sale for $13 million that was an all-time record high for Los Altos.
There were 113 homes, or 54%, that sold for more than list price; this compares to 60% in 2022 and 77% in 2021. There was a shift in this statistic between the first and second halves with 52% sold over list price in the first half and 56% in the second half as demand continued to increase later in the year.
LENGTH OF TIME TO SELL
Homes sold very fast in 2023. The greatest percentage, 44%, sold in 7 days or less; another 26% sold within 8 to 14 days. There were only 32 homes that were on the market for 30 days or more.
There was a direct correlation between days on market and price. For the 29 homes that required a price reduction, the average days on market was 53; all other homes had an average days on market of just 13. Setting the correct price based on local market knowledge and market conditions is essential to obtaining maximum value and a timely sale.
OUTLOOK
With interest rates below 6% for approximately 90% of US homes, many sellers are discouraged about reentering the market as they would have to relinquish their historically low rates, despite the fact that rates have been coming down in the past 6 months. The prevailing outlook last year was based on the specter of a potential recession looming over Silicon Valley. This contributed to the notably low inventory levels, which resulted in strong prices.
This trend is likely to persist into the first several months of 2024, creating a sellers’ market with low inventory. For sellers navigating this market, especially those aiming to sell and swiftly re-buy with cash, the conditions seem favorable for achieving real estate goals. However, buyers face a more intricate landscape as low inventory may spur multiple offers on highly coveted properties, and navigating fluctuating interest rates presents a challenge.
In our area, the real estate market is intricately intertwined with a complex intersection of buyer sentiment, encompassing fluctuations in individuals’ net worth, availability of restricted stock units (RSUs), interest rates, and optimism regarding the Valley’s ability to replicate its past success. I also predict a slower-than-usual Q3 in 2024, attributing this to the unusual circumstances of a politically charged election, potentially keeping many buyers on the fence as they await the outcome.
Despite this, my optimism prevails, envisioning the Valley’s continued innovation. With the rapid pace of breakthroughs in artificial intelligence, I foresee Silicon Valley companies creating new markets and prospering from these advancements, contributing to the region’s resilience and adaptability in the ever-evolving real estate landscape. I remain optimistic on the long-term value of owning a home in Los Altos, which continues to be one of the best places to live in the Bay Area. If you would like more information on any of the information in this report, or if you would like to discuss your specific real estate needs, please give me a call.
No one sells more homes in Los Altos than David Troyer. David represented buyers and sellers of 22 Los Altos homes in 2023 – more than any other agent. It’s results like this that place David as the #4 Large Team in Northern California and #28 in the United States, per RealTrends, 2023.
PRICES
Following 2022’s record high prices, 2023 had the slightest decline in the average price settling at $4,374,574 for the year. This was well above $4 million for the third year in a row. The average price was also quite consistent throughout the year with little fluctuation between the first half and second half.
The median price, at $4,100,000, was also just slightly lower than the record high in 2022. It too remained above $4 million for the third year in a row. For the median price, there was in fact a change between halves with a first half median price of $4,001,000 and a stronger second half at $4,251,000. This bodes well for going into 2024.
48 homes, or 23%, sold for $5 million or more. The highest end of the market was strong with 8 sales for $7 million or more, including 1 sale for $13 million that was an all-time record high for Los Altos.
There were 113 homes, or 54%, that sold for more than list price; this compares to 60% in 2022 and 77% in 2021. There was a shift in this statistic between the first and second halves with 52% sold over list price in the first half and 56% in the second half as demand continued to increase later in the year.
LENGTH OF TIME TO SELL
Homes sold very fast in 2023. The greatest percentage, 44%, sold in 7 days or less; another 26% sold within 8 to 14 days. There were only 32 homes that were on the market for 30 days or more.
There was a direct correlation between days on market and price. For the 29 homes that required a price reduction, the average days on market was 53; all other homes had an average days on market of just 13. Setting the correct price based on local market knowledge and market conditions is essential to obtaining maximum value and a timely sale.
OUTLOOK
With interest rates below 6% for approximately 90% of US homes, many sellers are discouraged about reentering the market as they would have to relinquish their historically low rates, despite the fact that rates have been coming down in the past 6 months. The prevailing outlook last year was based on the specter of a potential recession looming over Silicon Valley. This contributed to the notably low inventory levels, which resulted in strong prices.
This trend is likely to persist into the first several months of 2024, creating a sellers’ market with low inventory. For sellers navigating this market, especially those aiming to sell and swiftly re-buy with cash, the conditions seem favorable for achieving real estate goals. However, buyers face a more intricate landscape as low inventory may spur multiple offers on highly coveted properties, and navigating fluctuating interest rates presents a challenge.
In our area, the real estate market is intricately intertwined with a complex intersection of buyer sentiment, encompassing fluctuations in individuals’ net worth, availability of restricted stock units (RSUs), interest rates, and optimism regarding the Valley’s ability to replicate its past success. I also predict a slower-than-usual Q3 in 2024, attributing this to the unusual circumstances of a politically charged election, potentially keeping many buyers on the fence as they await the outcome.
Despite this, my optimism prevails, envisioning the Valley’s continued innovation. With the rapid pace of breakthroughs in artificial intelligence, I foresee Silicon Valley companies creating new markets and prospering from these advancements, contributing to the region’s resilience and adaptability in the ever-evolving real estate landscape. I remain optimistic on the long-term value of owning a home in Los Altos, which continues to be one of the best places to live in the Bay Area. If you would like more information on any of the information in this report, or if you would like to discuss your specific real estate needs, please give me a call.
No one sells more homes in Los Altos than David Troyer. David represented buyers and sellers of 22 Los Altos homes in 2023 – more than any other agent. It’s results like this that place David as the #4 Large Team in Northern California and #28 in the United States, per RealTrends, 2023.
Rollover or click map to see more information for each area.
Rollover or click map to see more information for each area.
The average price was $4,691,799, representing a less than 1% decline from the record high in 2022. The median price declined by 1.5%.
There were 70 sales, of which 41% were in the first half and 59% were in the second half. This is the lowest number of sales on records dating back to 2000. 31 of the homes, or 44%, sold for more than list price.
A record-high sales price was reached at $13 million; the previous high was $10 million in 2022.
The average price was down less than 1% to $4,720,385 and the median price was down just 1.5% to $4,307,000. There were 13 sales, a significant 58% decline compared to 31 sales in 2022. This was the lowest number of sales on records dating back to 2000.
Of the 13 sales, 5 of them sold for more than list price. 11 homes sold in 30 days or less and 5 sold in 9 days or less.
This area had the highest average price in all of Los Altos.
This once more affordable neighborhood reached record highs over $4 million for the first time, on par with all other neighborhoods in Los Altos. This is double what prices were just 8 years ago. Average and median prices each increased; the only area in Los Altos to experience this in 2023. 9 of the 16 sales, or 56%, were for more than list price and homes sold quickly with 69% selling in 12 days or less.
Like all areas, the number of sales was down, and with just 16 sales this was by far the lowest on records dating back to 2000 (the previous low was 24 homes sold in 2008).
As always, more homes sold in South Los Altos than other areas in Los Altos due to its geographic size. However, the number of sales, at just 110, was the lowest ever on records dating back to 2000.
The average price was down less than 1% in 2023 and remained above $4 million for the third year in a row. There was no change in the median price, holding strong at $4 million. The price per square foot, while down, was the highest in all of Los Altos.