Month-over-Month Changes

The Palo Alto real estate market in January 2024 showed some fluctuations compared to December 2023:

  • Homes Sold: There was a slight decrease in the number of homes sold, from 17 in December 2023 to 16 in January 2024, marking a 6% drop.
  • Median Sale Price: We observed a significant increase in the median sale price, from $2,900,000 in December 2023 to $3,350,000 in January 2024, a 16% rise.
  • Days on Market (DOM): The DOM decreased to 11 days in January 2024 from 18 days in December 2023.
  • Percentage of List Price Received: Sellers received an average of 103% of their asking price in January 2024, up from 101% in December 2023.

Analysis

The Palo Alto market demonstrates a robust demand, as evidenced by the increase in median sale prices and sellers receiving more than their asking price. The decrease in DOM suggests that properties are moving faster, indicating a competitive market environment.

Year-over-Year Comparison

When comparing January 2024 to January 2023, the following trends emerge:

  • Homes Sold: Increased significantly by 78%, from 9 homes sold in January 2023 to 16 in January 2024.
  • Median Sale Price: Saw a modest increase from $3.17M in January 2023 to $3.35M in January 2024.
  • Days on Market: There was a dramatic decrease in DOM, from 50 days in January 2023 to 11 days in January 2024.
  • Percentage of List Price Received: Improved from 97% in January 2023 to 103% in January 2024.
  • Months of Inventory: Decreased from 2.6 months in January 2023 to 1.4 months in January 2024.
  • Average Dollar per Sq. Ft.: Increased from $1,562 in January 2023 to $1,869 in January 2024.

Analysis

Year-over-year data indicates a thriving market with a significant increase in homes sold and a faster selling process. The rise in the percentage of list price received and the average dollar per square foot further confirms the strong market conditions favoring sellers.

Price Points and Quadrants

January 2024’s sales data by quadrants reveal:

  • Top Quadrant: 4 homes sold, Median Sale Price: $5,097,500, Median DOM: 5, Avg. $/Sq.Ft.: $1,939.
  • Second Quadrant: 4 homes sold, Median Sale Price: $3,546,500, Median DOM: 14, Avg. $/Sq.Ft.: $1,701.
  • Third Quadrant: 4 homes sold, Median Sale Price: $3,125,000, Median DOM: 11, Avg. $/Sq.Ft.: $1,866.
  • Bottom Quadrant: 4 homes sold, Median Sale Price: $2,482,500, Median DOM: 10, Avg. $/Sq.Ft.: $1,740.

Analysis

The distribution across quadrants shows a balanced market activity, with all price points experiencing movement. The top quadrant, however, stands out with the highest median sale price and average dollar per square foot, indicating a particular demand for premium properties.

Conclusion

The Palo Alto real estate market in January 2024 has demonstrated resilience and growth, with a notable increase in sales activity and property values. The data suggests a competitive market, especially for high-value properties, reflecting continued buyer interest and confidence. As we move forward, these insights will be invaluable for both buyers and sellers navigating the Palo Alto real estate landscape.

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