Month-over-Month Changes

In August 2023, Palo Alto’s real estate market exhibited the following changes compared to July 2023:

  • Homes Sold: 29 homes were sold, marking a 7% increase from 27 sales the previous month.
  • Median Sale Price: Increased by 27%, from $3,060,000 in July 2023 to $3,900,000 in August 2023.
  • Days on Market (DOM): Decreased from 11 to 9 days.

Analysis:
The month-over-month data indicates a market that is gaining momentum. The increase in homes sold and the significant rise in the median sale price suggest that demand is robust. The decrease in DOM indicates that properties are moving faster, favoring sellers.

Year-over-Year Comparison

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

  • Homes Sold: No change, 29 homes sold in both periods.
  • Homes Listed: Decreased by 14%, from 42 to 36.
  • Median Sale Price: Increased from $3.4M to $3.9M.
  • Median Days on Market: Decreased from 13 to 9 days.
  • Average Dollar per Square Foot: Increased from $1,907 to $1,975.
  • Percentage of List Price Received: Increased from 101% to 103%.
  • Months of Inventory: Decreased from 1.8 to 1.3.

Analysis:
Year-over-year, the market has seen a decrease in the number of homes listed but an increase in sale prices and a faster sales cycle. This suggests a seller’s market where inventory is tight, but demand is high enough to drive up prices.

Price Points and Quadrants

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

  • Top Quadrant: 8 homes sold, Median Sale Price: $7,637,500, Median DOM: 25, Avg. $/Sq.Ft.: $1,840.
  • Second Quadrant: 7 homes sold, Median Sale Price: $4,250,000, Median DOM: 9, Avg. $/Sq.Ft.: $1,866.
  • Third Quadrant: 7 homes sold, Median Sale Price: $3,450,100, Median DOM: 8, Avg. $/Sq.Ft.: $1,821.
  • Bottom Quadrant: 7 homes sold, Median Sale Price: $2,968,000, Median DOM: 9, Avg. $/Sq.Ft.: $1,931.

Analysis:
The data shows that all quadrants are active, but the top quadrant is seeing the most activity. This suggests that higher-priced homes are moving quickly, indicating a strong market for sellers in these price ranges.

Conclusion

The Palo Alto market in August 2023 showed an increase in homes sold compared to the previous month, but a decrease in homes listed year-over-year. The increase in median sale price year-over-year and the stable DOM indicate a strong market, particularly for sellers. The quadrant data provides valuable insights for both buyers and sellers, showing that higher-priced homes are particularly competitive.

Data provided by MLSListings and is deemed reliable but not guaranteed.