Menlo Park East
What a change a few months make in this crazy market! For the area of Menlo Park East of El Camino Real, Q2 and Q3 of 2013 were very predictable. After a big spring market, things settled down a bit in the fall. Median Sold Prices were about the same in Q2 and Q3—around $1,250,000. Days on Market weren’t too far apart at 18 for Q2 and 24 for Q3.
Then came the big surprise of Q4! In what is typically the slow selling season, we saw the Median Sold Price in Menlo Park East jump to $1,365,000 and Days on Market plummet to 14! In the late fall/early winter, prices moved higher and houses moved faster than in the hot spring market.
If you compare Q4 2012 and Q4 2013, the numbers are even more surprising. The Median Sold Price rose from $925,000 to $1,365,000—an increase of 47.6%. Days on Market were cut in half, from 30 in Q4 2012 to 14 in Q4 2013.
Lindenwood
Unlike other areas, like Lindenwood, where Sold Prices may have risen due to different types of homes on the market, the increases in Menlo Park East were due to true appreciation in home values.
Low Inventory
Another interesting statistic is that while Median Sold Prices soared, For Sale prices only increased 15.5% in the past year. The problem, a common theme in 2013, was inventory. The number of homes for sale dropped from 58 in Q4 2012 to just 33 in Q4 2013. With fewer properties on the market, anxious buyers bid up the prices with multiple offers—sometimes far above asking prices.
This lack of inventory is really halting the market and making things difficult for both buyers and agents. One would think that with selling prices at record highs that there would be more homeowners rushing to put their homes on the market. The catch is that prices are higher all over the peninsula, so unless you are moving out of the area, there’s no place to go.
What Will Happen in 2014?
It’s difficult to predict what exactly 2014 will bring, except that the market is likely to remain strong as long as interest rates stay reasonably low. This is good for sellers who should still be able to get amazing prices for their homes. For buyers who can find a home they like and can afford, 2014 may be a good time for them, too, if they can lock in low interest rates that will likely be rising later in the year and in 2015.
In this dynamic market, whether you are a buyer or a seller, it’s essential to hire an experienced agent who understands the intricacies of each neighborhood and will work hard to help you reach your real estate goals. Contact me. I’d love to help you!
* Menlo Park East of El Camino Real includes the area located between El Camino, Encinal Avenue, 101, and San Francisquito Creek. This area includes the following neighborhoods: Linfield Oaks, Felton Gables, Park Forest, Seminary/Vintage, Menlo Oaks, The Willows, Suburban Park, Flood Triangle, Lorelei Manor, and North Fair Oaks.
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