Month-over-Month Changes

In December 2023, the Palo Alto real estate market experienced several shifts compared to November 2023:

  • Homes Sold: There was a decrease in the number of homes sold, with 17 homes sold in December, down 11% from 19 sales in November.
  • Median Sale Price: The median sale price remained stable, showing no significant change from the previous month.
  • Days on Market (DOM): The average DOM increased to 18 days in December, up from 9 days in November.
  • Percentage of List Price Received: Sellers received an average of 101% of their asking price, a slight decrease from 103% in November.

Analysis

The Palo Alto market in December 2023 indicates a slight cooling, with fewer homes sold and an increased DOM. However, the stable median sale price and the percentage of list price received suggest continued seller advantage.

Year-over-Year Comparison

Comparing December 2023 to December 2022, the following changes were observed:

  • Homes Sold: Increased by 21%, from 14 homes in December 2022 to 17 homes in December 2023.
  • Median Sale Price: Rose slightly from $2.85M in December 2022 to $2.90M in December 2023.
  • Days on Market: Decreased significantly from 30 days in December 2022 to 18 days in December 2023.
  • Percentage of List Price Received: Improved from 95% in December 2022 to 101% in December 2023.

Analysis

Year-over-year, the Palo Alto market shows a healthy increase in the number of homes sold and a faster sales cycle, indicating a robust market. The increase in the percentage of list price received further underscores a strong seller’s market.

Price Points and Quadrants

The sales details for December 2023 were broken down by quadrants:

  • Top Quadrant: 5 homes sold, Median Sale Price: $4,250,000, Median DOM: 24, Avg. $/Sq.Ft.: $1,972.
  • Second Quadrant: 4 homes sold, Median Sale Price: $3,037,500, Median DOM: 33, Avg. $/Sq.Ft.: $1,516.
  • Third Quadrant: 4 homes sold, Median Sale Price: $2,725,000, Median DOM: 21, Avg. $/Sq.Ft.: $1,925.
  • Bottom Quadrant: 4 homes sold, Median Sale Price: $2,150,000, Median DOM: 14, Avg. $/Sq.Ft.: $2,210.

Analysis

The data shows that the top quadrant experienced the highest median sale price and a relatively longer DOM, indicating a demand for premium properties. The bottom quadrant, despite having the lowest median sale price, showed a quicker sales cycle, suggesting a competitive market across various price points.

Conclusion

The Palo Alto real estate market in December 2023 demonstrated a dynamic environment. While there was a decrease in the number of homes sold month-over-month, the year-over-year comparison reveals a significant increase in sales and a faster selling process. The market remains favorable for sellers, as indicated by the stable sale prices and the high percentage of list price received. The quadrant analysis provides insights into the varying dynamics across different market segments, with all quadrants showing active movement.

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