Los Altos Real Estate Market Report - 2017 Year in Review
Like most of the Silicon Valley real estate market, including the Cupertino market, Los Altos housing inventory dropped to its lowest levels at the end of 2017. Total sales rose. Both of these factored into forcing the average sale price and price-per-square-foot to their highest levels ever. As we start 2018, we expect to see further price appreciation until either new construction increases or people move out of the area.
Los Altos Real Estate Market - Total Sales
Overall, 15.5% more Los Altos homes were sold in 2017 (381) than in 2016 (330). January reported a total of 17 homes sold. There was a steady increase for each month until the Los Altos real estate market hit its peak in June with 49. Sales began to decrease in July but went up again in September, hitting its second highest peak in November with 41 sold. Finally, the year ended with 18 sold in December, only slightly higher than where it started the year out.
Los Altos Real Estate Market - Inventory
Throughout all of the Silicon Valley real estate market, inventory levels have dropped dramatically. The Los Altos market is no exception. January started off with 1.3 months of inventory available. It increased slightly to 1.4 months available in February, but never again went above one month of availability for the rest of the year. In December, they closed out the year with just 0.3 months available, the average for the entire county. That's only about ten days of inventory available.
Los Altos Real Estate Market - Average Sale Price
Low inventory partnered with high demand could have contributed to the 6.1% increase in the average sale price in 2017. Los Altos Buyers paid an average of $3,254,235 in January 2017 (6.3% above the average list price). The Los Altos market saw prices roller coaster each month, with some months showing an increase while others fell lower. It ended the year at $3,451,236, (25.4% above the average list price and the highest average sale price in 2017).
Los Altos Real Estate Market - Price-Per-Square-Foot
The average price-per-square-foot for a Los Altos home started off at $1,162 in January 2017. It went up to $1,359 in February and then began to decrease each month after that until reaching $1,242 in July. In August, it experienced a slight bump up but dipped again in September before starting to go upwards again in October. December's average price-per-square-foot came in at $1,360.
Silicon Valley Market Report - Los Altos 2017 Year in Review Summary
The most significant concentration of homes sold throughout Santa Clara County during December was in the $800,000 to $1,000,000 range, which made up 17.7% of the total sales for the county. The $3,451,236 average Cupertino reported in December 2017 represented a portion of 3.2% of the Santa Clara County totals. Inventory levels averaged around 0.3 months (or approximately ten days) available. Active listings available for sale in the entire Santa Clara County dropped from 1,990 in December 2016 to 977 in December 2017, a 51% decrease. As prices go up and inventory goes down, Silicon Valley buyers turn to lower priced areas like Morgan Hill and Gilroy. Until more inventory comes on the market, this will continue to be business as usual in the Silicon Valley. Low unemployment and high consumer confidence have financial experts expecting to see Federal interest rates increase three times in 2018.
If you're interested in purchasing a property, please contact your Silicon Valley REALTOR@ to find out what's available in the area you're interested in. Visit our Home Buying page to learn more about the home buying process.