Month-over-Month Changes

In March 2024, the Palo Alto real estate market showed significant positive changes compared to February 2024:

  • Homes Sold: Increased dramatically from 15 sales to 31 sales, demonstrating a growth of 107%.
  • Median Sale Price: Rose from $3,165,000 in February to $3,600,000 in March, marking a 14% increase.
  • Days on Market (DOM): Increased slightly from 7 days in February to 8 days in March.
  • Percentage of List Price Received: Improved from 105% to 108%, indicating strong buyer competition and willingness to pay above asking price.

Analysis

The month-over-month growth in the number of homes sold and the median sale price reflects a robust market, with homes selling faster and for more than their listed prices, highlighting a seller’s advantage in the current market conditions.

Year-over-Year Comparison

Comparing March 2024 with March 2023, we observe:

  • Homes Sold: A decrease from 35 homes sold in March 2023 to 31 in March 2024.
  • Median Sale Price: Has increased from $3.45M in March 2023 to $3.60M in March 2024.
  • Days on Market: Decreased from 9 days in March 2023 to 8 days in March 2024.
  • Percentage of List Price Received: Increased significantly from 101% to 108%, showing a continuing trend of competitive bidding.

Analysis

Despite a slight decrease in the number of homes sold year-over-year, the increase in median sale prices and the percentage of list price received suggest a tightening market where demand continues to outpace supply, pushing prices upward.

Price Points and Quadrants

The breakdown of sales by quadrants in March 2024 is as follows:

  • Top Quadrant: 8 homes sold, Median Sale Price: $5,165,000, Median DOM: 8, Avg. $/Sq.Ft.: $1,893.
  • Second Quadrant: 8 homes sold, Median Sale Price: $3,910,000, Median DOM: 8, Avg. $/Sq.Ft.: $1,889.
  • Third Quadrant: 8 homes sold, Median Sale Price: $3,400,000, Median DOM: 7, Avg. $/Sq.Ft.: $1,973.
  • Bottom Quadrant: 7 homes sold, Median Sale Price: $2,810,000, Median DOM: 11, Avg. $/Sq.Ft.: $1,825.

Analysis

The sales data reveals a highly active upper market with high-priced homes moving quickly, suggesting strong demand in the premium segments. Lower quadrants, while slightly slower, still show considerable activity, indicating a diverse and dynamic market.

Conclusion

Palo Alto’s real estate market in March 2024 demonstrated vigorous activity with increasing prices and a higher percentage of list price received, indicating a strong market favorable to sellers. Buyers are actively competing, often paying above the asking price to secure properties in this high-demand area. The detailed quadrant analysis provides insights into where the most intense activities are happening, making it clear that high-end properties are particularly sought after.

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