RECAP OF 2023
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 54 homes sold as reported through the Multiple Listing Service in 2023, a 29% decline since 2022 and a 58% decline since 2021.
Additionally, there was 1 sale of vacant land for $800,000.
PRICES
After record highs in 2022, prices shifted slightly downward. The average price was down 3% falling beneath the $6 million level that was reached for the first time in 2022. The median price fell 5%; both numbers are the second highest on record. It is also encouraging to note that the average price in the second half of the year was in fact over $6 million at $6,023,881. This bodes well for heading into 2024. Two of the three highest priced sales occurred in the second half.
The three highest sales were between $12.25 million and $16.25 million. The vast majority of the sales, 67%, were between $4 million and $7 million. 15% were between $7 million and $10 million.
There were 19 homes, or 35%, that sold for more than list price; this compares to 49% in 2022 and 55% in 2021. As the year went on, fewer homes sold over list price: 40% in the first half and 31% in the second half.
LENGTH OF TIME TO SELL
Homes sold very fast in 2023. Half of all homes sold in 11 days or less and the majority of homes, 56%, sold in 14 days or less. There were 5 homes that were on the market for more than 100 days, each of which had a price reduction prior to selling.
There was a direct correlation between days on market and price. For the 11 homes that were not accurately priced when listed and therefore required a price reduction, the average days on market was 120. All other homes had average days on market of just 15. 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 Hills, 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/Los Altos Hills than David Troyer. In just the past 4 years, David sold over $205 million in Los Altos Hills sales. 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
After record highs in 2022, prices shifted slightly downward. The average price was down 3% falling beneath the $6 million level that was reached for the first time in 2022. The median price fell 5%; both numbers are the second highest on record. It is also encouraging to note that the average price in the second half of the year was in fact over $6 million at $6,023,881. This bodes well for heading into 2024. Two of the three highest priced sales occurred in the second half.
The three highest sales were between $12.25 million and $16.25 million. The vast majority of the sales, 67%, were between $4 million and $7 million. 15% were between $7 million and $10 million.
There were 19 homes, or 35%, that sold for more than list price; this compares to 49% in 2022 and 55% in 2021. As the year went on, fewer homes sold over list price: 40% in the first half and 31% in the second half.
LENGTH OF TIME TO SELL
Homes sold very fast in 2023. Half of all homes sold in 11 days or less and the majority of homes, 56%, sold in 14 days or less. There were 5 homes that were on the market for more than 100 days, each of which had a price reduction prior to selling.
There was a direct correlation between days on market and price. For the 11 homes that were not accurately priced when listed and therefore required a price reduction, the average days on market was 120. All other homes had average days on market of just 15. 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 Hills, 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/Los Altos Hills than David Troyer. In just the past 4 years, David sold over $205 million in Los Altos Hills sales. 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.
As in all surrounding cities, sales were down dramatically from the record-breaking highs of 2021 during the pandemic. There were 76 homes reported through the Multiple Listing Service in 2022, a 41% decline since the record-breaking high in 2021 of 128. Additionally, there were 4 sales of vacant land with an average price of $3.9 million.
Homes sold very fast in 2022, in fact, the fastest of any year on records dating back to 2006. Half of all homes sold in 9 days or less and the majority of homes, 63%, sold in 14 days or less. There were 26 homes that were on the market for more than 30 days, including 7 homes on the market for more than 100 days.
There was a direct correlation between days on market and price. For the 14 homes that were not accurately priced when listed and therefore required a price reduction, the median days on market was 60. All other homes had median days on market of just 8. Setting the correct price based on local market knowledge and market conditions is essential to obtaining maximum value and a timely sale.