The market is changing, the market is changing…or is it? There is much talk about a changing real estate market, but this mantra does not seem to be ringing true in West Menlo Park. The very desirable neighborhoods of West Menlo Park, specifically Allied Arts, Central Menlo, County/Alameda and Sharon Heights/Stanford Hills are repeating last year’s amazing results. Below are three charts showing the rolling 12 month average for New Listings, Homes Currently for Sale and Average Price. In the first quarter the number of new listings is down 10.0% year over year (YOY) and shows a relative typical trend line. Same goes for the total number of homes for sale, down 5.9% YOY. Conversely, due to consistent and continued buyer demand, this lower inventory produced an average sales price increase of 8.6% YOY.
Looking ahead, there are some changes in Silicon Valley which we will watch with much interest. Start-ups will tell you funding is harder to find, IPOs are virtually nonexistent and small local layoffs have been quietly, and in some cases, not so quietly taken place. Will this create a change in the market? Only time will tell. While there are some unknowns and questionability in our near future, the characteristics which make West Menlo Park real estate hold its value remain: wonderful tree lined streets, excellent community feel, strong scoring schools, consistently mild climate and easy access to all that Silicon Valley has to offer.
