There's been a lot of speculation about what will happen to the market in Palo Alto. Will it drip 30%, drop 10%, improve in 6 months? Most of the argument against Palo Alto having a lot more decrease in home value is the thought that most people here didn't get bad loans and therefore don't have to sell. If most people don’t have to sell, the prices shouldn't go down too much. However, if more people selling do HAVE to sell that might bode sharper decreases. I thought it would be interesting and potentially very helpful to you to see (as best I can), who is selling. I have broken the listings up into over 2 million and under 2 million for the asking price thereby putting the listings into categories:
Over 2 Million:
10 New construction
5 Vacant
7 Owner occupied
1 Short Sale (this is also new construction but I put it in short sale)
1 Rental
1 to be built
0 Bank owned
Under 2 Million:
10 New construction
14 Vacant
17 Owner occupied
0 Short Sale
0 Bank Owned
5 Rentals
1 Stanford property
So what does this mean? Quite frankly I'm not entirely sure, but I believe that new and vacant properties are likely to have more flexibility in pricing than owner occupied homes. The single big exception to that rule would be short sales, but as you can see there's only 1 in Palo Alto. There is a much higher percentage of new and vacant homes in the listings over 2 million, so maybe it means there is more room for prices to drop in this segment. We’ll see. I will keep you updated about who's selling over the next few months and how that may relate to what the market is doing.
If you are interested in finding the final selling price of any home, anywhere, you can do it on my web site. Go to www.marcymoyer.com and click on Cyberhome Home Valuation. You can then type in any address next to the search icon and get the county records.
If you need anything else please feel free to contact me. I am here to help you.
Marcy Moyer, Intero Real Estate
650-619-9285
www.marcymoyer.com
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