Month-over-Month Changes

In March 2024, the Palo Alto real estate market experienced several noteworthy changes compared to February 2024:

  • Homes Sold: 25 homes were sold, marking a 17% increase from 21 sales the previous month.
  • Median Sale Price: Decreased by 2% from $4,950,000 in February 2024 to $4,850,000 in March 2024.
  • Days on Market (DOM): Rose to 12 days from 10 days in February 2024.
  • Percentage of List Price Received: Sellers received 98% of their asking price in March 2024, down from 101% in February 2024.

Analysis

The month-over-month data indicates a slight shift in the market dynamics. The increase in the number of homes sold suggests a rise in buyer activity, even as the median sale price experienced a modest decline. The increase in DOM and the slight dip in the percentage of list price received could indicate a need for sellers to manage expectations amidst a competitive market.

Year-over-Year Comparison

Comparing March 2024 to March 2023, the following changes were observed:

  • Homes Sold: Decreased by 12%, from 28 to 25.
  • Homes Listed: Decreased by 20%, from 35 to 28.
  • Median Sale Price: Increased by 6% from $4,575,000 in March 2023 to $4,850,000 in March 2024.
  • Median Days on Market: Increased from 8 to 12.
  • Percentage of List Price Received: Decreased from 103% to 98%.
  • Months of Inventory: Increased from 1.5 to 1.8.

Analysis

The year-over-year comparison highlights a trend of rising home prices, despite a decrease in the number of homes sold and listed. The market appears to favor sellers, with a notable increase in the median sale price. However, the increase in median DOM and the decrease in the percentage of list price received suggest that buyers may be more discerning, leading to slightly longer sales cycles.

Price Points and Quadrants

The sales details for March 2024 were broken down by quadrants:

  • Top Quadrant: Homes Sold: 6, Median Sale Price: $6,200,000, Median DOM: 10, Avg. $/Sq.Ft.: $1,825
  • Second Quadrant: Homes Sold: 7, Median Sale Price: $5,100,000, Median DOM: 9, Avg. $/Sq.Ft.: $1,675
  • Third Quadrant: Homes Sold: 6, Median Sale Price: $4,400,000, Median DOM: 15, Avg. $/Sq.Ft.: $1,545
  • Bottom Quadrant: Homes Sold: 6, Median Sale Price: $3,300,000, Median DOM: 14, Avg. $/Sq.Ft.: $1,375
  • Analysis

The data indicates that higher-priced homes in the top and second quadrants are moving quickly, with lower median DOM compared to the other quadrants. The strong performance in these price ranges underscores the demand for premium properties in Palo Alto. The activity in the bottom quadrant suggests that more affordable options are also finding buyers, albeit with slightly longer market times.

Conclusion

The Palo Alto market in March 2024 showed a mixed performance with a higher number of homes sold month-over-month, but a slight decrease in median sale price. The year-over-year trends point to a robust market, particularly for higher-priced homes, even as buyers exercise more caution. The quadrant data provides valuable insights for both buyers and sellers, highlighting a competitive landscape for premium properties.

Data provided by MLS Listings and is deemed reliable but not guaranteed.