Month-over-Month Changes

The Palo Alto real estate landscape has shown some fluctuations when comparing February 2024 data with the preceding month, January 2024:

  • Homes Sold: There was a slight decrease in the number of homes sold, with 15 transactions in February 2024, marking a 6% decline from 16 sales in January 2024.
  • Median Sale Price: Experienced a 6% reduction, dropping from $3,350,000 in January 2024 to $3,165,000 in February 2024.
  • Days on Market (DOM): February 2024 saw a decrease in DOM to 7 days, down from 11 in January 2024.
  • Percentage of List Price Received: On average, sellers received 105% of their asking price in February 2024, a slight improvement from 103% in January 2024.

Analysis

The month-over-month data suggests a cooling in the Palo Alto market, indicated by a decrease in the number of homes sold and median sale price. However, the decrease in DOM and an increase in the percentage of the list price received indicate that while fewer homes are being sold, the market remains competitive for those that are listed.

Year-over-Year Comparison

Year-over-year analysis from February 2023 to February 2024 reveals significant market changes:

  • Homes Sold: Increased by 25%, from 12 in February 2023 to 15 in February 2024.
  • Median Sale Price: A noticeable decrease from $3.55M in February 2023 to $3.17M in February 2024.
  • Days on Market: Slight decrease in DOM, from 8 days in February 2023 to 7 days in February 2024.
  • Percentage of List Price Received: Improved, with sellers receiving 105% of their asking price in February 2024 compared to 102% in February 2023.
  • Months of Inventory: Dropped significantly from 3.9 months in February 2023 to 2.5 months in February 2024, indicating a tighter market.

Analysis

The year-over-year data highlights a dynamic market. An increase in the number of homes sold coupled with a decrease in DOM and months of inventory suggests a market that is moving faster, despite a reduction in median sale prices. The increased percentage of list price received further emphasizes the competitive nature of the market.

Price Points and Quadrants

Breaking down the sales data by quadrants for February 2024 offers insights into market activity across different price points:

  • Top Quadrant: 4 homes sold with a median sale price of $5,582,944, median DOM of 68, and an average of $1,749 per sq. ft.
  • Second Quadrant: 4 homes sold, median sale price of $4,415,000, median DOM of 7, and an average of $1,678 per sq. ft.
  • Third Quadrant: 4 homes sold, median sale price of $2,910,000, median DOM of 4, and an average of $1,738 per sq. ft.
  • Bottom Quadrant: 3 homes sold, median sale price of $2,700,000, median DOM of 8, and an average of $2,086 per sq. ft.

Analysis

The quadrant analysis indicates a vibrant market across various price points, with activity in each quadrant reflecting a diversified demand. The top and second quadrants show significant activity, suggesting a strong appetite for higher-priced homes. Interestingly, the bottom quadrant, despite having the least number of homes sold, shows a remarkable average price per square foot, highlighting a premium on certain properties within this category.

Conclusion

The Palo Alto market in February 2024 reflected a mix of dynamics, with a decrease in median sale prices yet an increase in sales activity and competitive pricing over asking. This analysis underscores a robust market environment, where strategic pricing and understanding of market quadrants can yield significant advantages for both buyers and sellers.

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