Desirable Palo Alto started off the New Year with many home sales exceeding asking price by crazy amounts. The year began with a total of 21 sales in the first 3 weeks of the month compared to 17 total closings in January 2011 and, on top of that, many of the homes were sold significantly higher than the listing price.
Palo Alto luxury real estate is on fire right now and some of the homes were high double digits over asking and most had multiple offers. I don’t believe this is a case of real estate agents under pricing the home with the hopes of multiple offers as all the homes have been priced very fairly for the size, location and condition. I think it’s a case of buyers with pent up energy looking for homes and just not enough inventory out there. Going back to my days of basic economics, high demand and low supply means… overbidding.
This is a good sign for sellers of Palo Alto homes, especially for the homeowners who have been sitting on the fence and waiting to get out from under water as now is definitely the time to sell.
There are more, but just a couple of examples of recent Palo Alto homes for sale with high ratios of sales versus asking price are:
185 Walter Hays listed at $1,398,000 and sold for $1,655,000 in 7 days (18.4 % over asking price)
769 Rosewood Drive listed at $1,050,000 and sold for $1,515,000 in 4 days (44.3% over)
971 Maddux Drive listed at $1,195,000 and sold for $1,361,000 in a week (14.1 % over)
I work on a lot of off market sales too and information throughout our offices are further verifying the asking price to sale price ratios listed above. Off market, or off MLS, are probably 20-30% of sales happening in Palo Alto, Atherton and Menlo Park, so make sure your agent is well connected to get you in the game, or call me.
Everybody, don’t forget to come by the open house at 4105 Park Blvd in Palo Alto this Sunday from 1:30-4:30pm. It’s hard to find a home in the Palo Alto school district for under a million dollars, but we have it to show this weekend. 3 Bedrooms, 2 full bath, 1,450 square feet on a 7,000 square foot lot. It’s a short walk to the park and kids play area. Plus there is a large back patio with a huge hot tub. A great home for entertaining and families of all ages. 
