As an experienced Peninsula realtor, I’m often asked what is driving the market’s continued rise quarter after quarter. And entering the third quarter of 2014, we continue to see home sales prices increasing and only expect them to rise from there. That enduring growth is attributable to the very diverse area in which we live, an area which is constantly reinventing itself.
Entrepreneurial reinvention, the core essence of the Valley, engenders a collaborative environment which in turn fosters the continued drive to create the next big thing, and which ultimately promotes new technologies, burgeoning companies and job creation. All of these elements have contributed in large part to the wealth creation and purchasing power of the current real estate market. The lack of home supply on or off market for buyers to purchase only serves to feed the frenzy.
The Numbers
Looking at 2013, we see a story which brings us to the first quarter of 2014. From the 1st to the 3rd quarter of 2013, there was a steady climb of $162,500 in West Menlo Park median home sales price. Surprisingly, comparing the first three quarters of 2013 to the last quarter of 2013, there was a $232,500 decrease in median sales price. According to this data, you would posit we had a terrible 4th quarter in 2013, but looking more into the details we see something else entirely. Thirty eight homes were sold in the 4th quarter of 2013, but at a much lower average price. This brought the median home price down and seemingly moved the needle in the opposite direction, making it look as though the market was turning downwards.
Press forward to the first quarter in 2014 and we actually see the steady climb from the first 3 quarters of 2013 continue. The median sales price rose by $175,000, an 8% climb with roughly the same number of homes sold (25 homes) from the high of $3.560 million to a low of $1.428 million.
To Participate or Not, That is the Question
Many buyers are averse to competing in a multiple offers situation as they don’t want to end up in a crazed bidding war. However, think of it like the lottery. Unless you play there is no chance of winning. My recommendation is to put an offer in, taking the driver’s seat. You really do not know how many offers will come in. In the past I have seen 10 disclosure packages go out, 5 buyers saying they are going to write… and no one comes to the table on offer day. That leaves the home wide open for the taking! I counsel my clients not to miss these increasingly common opportunities. At the end of the day only you can control what you are willing to transact on, but you have to dive in first.
When it comes to the real estate market, especially like the one we find ourselves in now, you need an advocate looking out for you. Whether it involves managing multiple offers on the buyer side, or fielding offers on the seller side, there is huge value-add to putting yourself in experienced hands. I specialize in attaining the highest value for a sale, ensuring there’s no money left on the table. Visit my website to learn more about what I offer: davidweilhomes.com.
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