2019 palo alto condo/townhome real estate review · 2020. 1. 28. · there were 74 sales of...
TRANSCRIPT
Your home is where our heart is
TROYERGROUP
THE
Dear Palo Alto Homeowners:
I am pleased to present you with my Palo Alto Real Estate Review for Condo and Townhome Owners for 2019 – the most comprehensive and up-to-date report available. This information is designed to help you understand the market trends and property valuations in Palo Alto, a town in which I have specialized in selling homes for 23 years. The data included in this report is based on sales of condos and townhomes that were publicly marketed through the Multiple Listing Service (MLS) and does not include any that were sold off-market in private sales. If you are interested in the Palo Alto single-family home market, please request my separate 2019 report on this market.
On a personal note, I am honored to be the #2 Team in Northern California and #21 Team in the United States, per The Wall Street Journal, 2019. I attribute my success to a passion for selling homes for 23 years, an in-depth knowledge of the communities I specialize in, and my incredible team members who provide our clients with an unparalleled level of service in this industry.
In today’s market, one of the most important things you can do when buying or selling a home is to be represented by an agent with local experience. Having represented more than 1,300 buyers and sellers in Silicon Valley, I have the experience and knowledge that it takes to successfully sell your home in 2020, or to find you the perfect home. We also provide leasing services to landlords looking for help finding a tenant for their rental property. We will create a customized marketing plan, make recommendations for light updates, handle showings and open houses, run credit checks, and prepare lease agreement documents. Please contact me with any questions and for a free market analysis of your home. It would be my pleasure to represent you.
Sincerely,
David Troyer
2019 PALO ALTO CONDO/TOWNHOME REAL ESTATE REVIEW
THE TROYER GROUP
2019 PALO ALTO CONDO/TOWNHOME REAL ESTATE REVIEW
RECAP OF 2019• Average price down 7%
• Median price down 12%
• 55% sold for more than list price
• Fewest number of sales on records back to 2003
• 3 sold for $3 million or more
• Days on market increased
NUMBER OF SALESThere were 74 sales of condos/townhomes reported through the Multiple Listing Service in 2019, 14 fewer than the previous year and the fewest on records dating back to 2003. This is far fewer than the 130 to 150+ sales we saw back in 2011 to 2012 and is attributed to the fewer number of homes available for sale and certainly not lack of demand. In 2019, there were 95 new listings, compared to 113 in 2018, and it was the lowest on records dating back to 2003.
PRICESSince the recession low in 2010, prices have steadily increased year over year. 2019 saw the first real shift in prices with the average down 7%, to just over $1.5 million. The median price (half of all homes above and below this price) was also down, dropping 12% to $1.5 million, the same level as in 2016 and 2017.
There were 74 homes sold, 41 or 55%, of which sold for more than list price; this compares to 81% in 2018. On average, homes sold for 103% of list price. There were also 14 homes, or 19%, that required a price reduction prior to selling – the highest number we have seen in many years.
Average price per square foot also declined in 2019 to $1,152. This is an 11% drop from 2018 but still more than double what it was in 2011.
7 of the 10 most expensive condos/townhomes sold were in the Downtown area. In all of Palo Alto, there were 3 sales for $3 million or more and 4 sales for less than $1 million. The vast majority of homes, 78%, sold between $1 million and $2 million.
LENGTH OF TIME TO SELLHalf of all Palo Alto condos and townhomes sold in 14 days or less compared to 10 days in the previous two years. There was a direct correlation between days on market and pricing. For the 14 homes that were not accurately priced when listed and required a price reduction, the median days on market was 50. For all other properties, the median days was just 9. Even in a robust market, setting the correct price based on local market knowledge is essential for obtaining maximum value and a timely sale.
Bed/Bath per Sq. Ft.
1/1 $1,187
2/1 $1,183
2/1.5 $1,025
2/2 $1,159
2/2.5 $1,244
3/2 $1,095
3/2.5 $1,215
3/3 $1,064
Average Price
82
82
EL CAMINO REAL
MIDDLEFIELD RD
ALMA ST
PAGE
MILL
RD
UNIVE
RSITY
AVE
EMBARCADERO RDORE
GON EXPW
Y
233234
235
237
239
242
241
236
240
230
232
231
238
Area Number Area
# of Sales High $ Low $ Median $ Average $
Median Days
231 Green Acres 5 $1,288,000 $805,000 $1,150,000 $1,108,200 26
232 Barron Park 2 $1,652,000 $1,498,000 $1,575,000 $1,575,000 18
233 South Palo Alto 36 $2,220,000 $875,000 $1,355,000 $1,462,260 10
234 Midtown 2 $1,560,000 $925,000 $1,242,500 $1,242,500 17
235 Ventura 1 $1,500,000 $1,500,000 $1,500,000 $1,500,000 13
236 College 9 $2,080,000 $1,350,000 $1,465,000 $1,514,444 15
237 Old Palo Alto 3 $2,840,000 $1,680,000 $1,685,000 $2,068,333 14
239 Crescent Park – – – – – –
242 Downtown Palo Alto 16 $3,400,000 $1,100,000 $1,806,500 $2,028,734 32
All of Palo Alto 74 $3,400,000 $805,000 $1,500,000 $1,589,353 14
Data is based on sales reported to the Multiple Listing Service and does not include any off-market sales.
DAVIDTROYER.COM
2019 PALO ALTO CONDO/TOWNHOME SUMMARY BY AREA
201920182017201620152014
Average Price
201920182017201620152014
Median Price
201920182017201620152014
Number of Sales
108
86
100
201920182017201620152014
Median Days on Market
11
14
10
$1,2
48
,083
$1,4
91,8
08
$1,5
02,3
21
$1,2
50,0
00
$1,4
61,9
44
$1,5
05,
00
090 88
$1,5
10,0
00
$1,7
01,0
00
$1,5
71,1
68
$1,7
06
,502
10 10
74
$1,5
89,3
53
$1,5
00,
00
0
14
201920182017201620152014
Average Price
201920182017201620152014
Median Price
201920182017201620152014
Number of Sales
108
86
100
201920182017201620152014
Median Days on Market
11
14
10
$1,2
48
,083
$1,4
91,8
08
$1,5
02,3
21
$1,2
50,0
00
$1,4
61,9
44
$1,5
05,
00
0
90 88
$1,5
10,0
00
$1,7
01,0
00
$1,5
71,1
68
$1,7
06
,502
10 10
74
$1,5
89,3
53
$1,5
00,
00
0
14
201920182017201620152014
Average Price
201920182017201620152014
Median Price
201920182017201620152014
Number of Sales
108
86
100
201920182017201620152014
Median Days on Market
11
14
10
$1,2
48
,083
$1,4
91,8
08
$1,5
02,3
21
$1,2
50,0
00
$1,4
61,9
44
$1,5
05,
00
0
90 88
$1,5
10,0
00
$1,7
01,0
00
$1,5
71,1
68
$1,7
06
,502
10 10
74
$1,5
89,3
53
$1,5
00,
00
0
14
201920182017201620152014
Average Price
201920182017201620152014
Median Price
201920182017201620152014
Number of Sales
108
86
100
201920182017201620152014
Median Days on Market
11
14
10
$1,2
48
,083
$1,4
91,8
08
$1,5
02,3
21
$1,2
50,0
00
$1,4
61,9
44
$1,5
05,
00
0
90 88
$1,5
10,0
00
$1,7
01,0
00
$1,5
71,1
68
$1,7
06
,502
10 10
74
$1,5
89,3
53
$1,5
00,
00
0
14
201920182017201620152014
Average Price
201920182017201620152014
Median Price
201920182017201620152014
Number of Sales
108
86
100
201920182017201620152014
Median Days on Market
11
14
10
$1,2
48
,083
$1,4
91,8
08
$1,5
02,3
21
$1,2
50,0
00
$1,4
61,9
44
$1,5
05,
00
0
90 88
$1,5
10,0
00
$1,7
01,0
00
$1,5
71,1
68
$1,7
06
,502
10 10
74
$1,5
89,3
53
$1,5
00,
00
0
14
THE TROYER GROUP
230 PALO ALTO HILLSThere are no condos/townhomes in Palo Alto Hills.
231 GREEN ACRESThere is just one condominium complex in Green Acres at 4250 El Camino Real. In 2019, there were 5 sales following just 1 in 2018, when the price exceeded $1 million for the first time. In 2019, 4 of the 5 sales were for $1.1 million or more and 2 sold for more than list price. Although the graph shows a decline in average price due to comparison to this one record sale in 2018, prices overall have increased substantially at this complex.
232 BARRON PARKThere were just 2 condos/townhomes sold in 2019 compared to 6 the previous year. In that year, 3 record-high prices were reached, which contributed to the 10% decline in average price for 2019. The 2 homes sold in 2019 were $1,498,000 (sold at list price) and $1,652,000 (sold over list price and in just 6 days).
233 SOUTH PALO ALTOAs always, more condos/townhomes sold in this area than in any other area in Palo Alto. Homes sold quickly with a median days on market of 10, the lowest of any area. There were 3 sales over $2 million and only 2 sales for less than $1 million, however the average price was down 10% and the median was down a significant 20%. Of the 36 homes sold, 22, or 61%, sold over list price.
234 MIDTOWNThe average price fell 5% to the lowest in 5 years. However, there were just 2 sales, thus the median price was also $1,242,500, and represented a 5% decline compared to 2018. One home sold for $1,560,000, 21% over list price, and the other sold at list price for $925,000.
235 VENTURAFew sales of condos/townhomes occur in this area, in fact except for 2018 when there were 4 sales, there have been 0 to 2 sales in the past 8 years. Thus, comparing averages does not necessarily indicate trends. Last year there was just 1 sale for $1,500,000, which sold just over list price in 13 days.
20192018201720162015
Average Sale Price
No
Sale
s
$68
8,5
00
$857
,250
$1,3
00
,88
8
$1,1
08
,20
0
20192018201720162015
Average Sale Price
$1,3
29,3
40
$1,3
58,7
17
$1,5
98
,137
$1,6
17,0
40
$1,4
62
,26
0
20192018201720162015
Average Sale Price
$1,4
49,3
33
$1,4
90,0
00
$1,3
48,8
89
$1,7
52,5
00
$1,5
75,0
00
20192018201720162015
Average Sale Price
$1,4
51,5
25
$1,6
72,4
00
$1,2
80,0
00
$1,3
09,2
50
$1,2
42
,50
0
20192018201720162015
Average Sale Price
$1,7
20,0
00
$1,7
00,0
00
$1,8
01,2
50
No
Sale
s
$1,5
00,0
00
No Condominiums
20192018201720162015
Average Sale Price
$1,2
83,2
86
$1,3
41,0
91
$1,3
49,3
00
$1,4
32,0
00
$1,5
14,4
44
DAVIDTROYER.COM
236 COLLEGEThe average price reached a record high in 2019 increasing 6% to $1,514,444. The median price also reached a record, increasing 7% to $1,465,000. Just 8 years ago, the median price was $594,000. There were 9 sales in 2019, 6 of which were for more than list price and 67% sold in 15 days or less.
237 OLD PALO ALTOThere are few condos/townhomes in this area, so it is not uncommon for there to be no sales or just one or two in a year. In 2019 though there were 3 sales, the most since 2003. A dramatic new high price of $2,840,000 was reached, but this new home was in actuality a detached single-family home. With it included in the condo/townhome class, the average price shot up to a new record in excess of $2 million. Excluding it, the average price was $1,682,500, which was still a 6% decline from 2018.
239 CRESCENT PARKThere were no condo/townhome sales in Crescent Park in 2019.
241 PROFESSORVILLEThere is just one small community in Professorville classified as condominiums, although they are detached cottages. There have been no sales in this community since 2010.
242 DOWNTOWN PALO ALTOThis area had the second-highest number of sales in Palo Alto. There were 16 sales compared to 27 the previous year and a new record average price was reached exceeding $2 million for the first time. The median price, however, dropped just slightly to $1,806,500. There were 5 sales for more than list price, 3 sales for $3 million or more, and no sales for less than $1.1 million. At a median of 32 days, homes took longer to sell here than in any other area of Palo Alto.
20192018201720162015
Average Sale Price
$2,3
00,0
00
$1,4
72,5
00
$1,4
98,0
00
$1,3
96,0
00
No
Sale
s
20192018201720162015
Average Sale Price
$1,7
89,3
63
$1,7
58,5
69
$1,8
84,1
40
$1,9
96,2
25
$2,0
28,7
34
20192018201720162015
Average Sale Price
$1,3
22,5
00
$1,4
00
,00
0
$1,5
02
,50
0
$1,7
82
,50
0
$2,0
68
,333
No Sales
Bryant St, PA
La Paloma Rd, LAH*
Giralda Dr, LA*
Sara Park Cir, SAR
Lucero Ln, LAH* Garthwick Ct, LA
Yerba Santa Ave, LA
Encinal Ct, LAH
Milan Dr, SJ
Ada Ave, MV
Mountain Laurel Ct, MV*
Montebello Oaks Ct, LA
Lisa Ln, LA*
Ainsworth Dr, LA
Riverside Dr, LA
Briarwood Ct, LA*
Sterling Ave, MPCowper St, PA*
Milano Way, MV*
Los Altos Ave, LAChesley Ave, MV*
Taaffe Rd, LAH
Lammy Pl, LA
Laurentian Way, SV*
Spargur Dr, LA
Shirley Ave, LA
San Antonio Rd, PA
Outlook Dr, LA La Vista Ct, SAR Holt Ave, LA
Bannock Cir, SJ
San Felicia Way, LA*
Rockcress Ter, MV
Brookmill Rd, LA
Yerba Buena Pl, LA
Emerson St, PA
Voorhees Dr, LAH*
Ensign Way, PA
Truman Ave, LA
Magpie Ln, SV
Alvarado Ave, LA*
La Loma Dr, LAH
Patlen Dr, LA
Laurel Glen Dr, PA*
Wheaton Dr, CUP
Templeton Dr, SV
Sequoia Dr, LA
Belshaw Dr, MV
Silvia Dr, LA
Ann Arbor Ave, CUP
N 9th St, SJW. Edith Ave, LA
Waverley St, PA
Granger Ave, LA* Verano Dr, LA
Torwood Ct, LA
Walnut Dr, MV Brookmill Rd, LA*
215 N Avalon Dr, LA
Montrose Ave, PA
Berwick Way, SV
Swanson Way, MV
Granger Ave, LA
Twinlake Dr, SV
Bonita Ave, MV
W Portola Ave, LA
Brighton Pl, MV*
Emerson St, PA
Espinosa Ln, MV Iris Dr, MV
Mardell Way, MV*
Bluebonnet Dr, SVSpring St, MVMallard Way, SV
Elena Rd, LAHGrant Rd, MV
San Lucas Ct, MV
Pico Ln, LA
Farndon Ave, LA*
Donovan Way, MV
Sleeper Ave, MV
Grant Rd, MV Gabilan St, LA
Ortega Ave, MV
Morgan St, MV* San Carlos Ave, MV
Tyrella Ave, MV
Solana Dr, LA
Deeprose Pl, CUP Mercy St, MV
Middlefield Rd, PA*
Adobe Creek Lodge Rd, LAH
Ada Avenue, MV Homestead Rd, CUPGabilan St, LA
W Edith Ave, LA
Loucks Ave, LA
San Carlos Ave, MV
Stanwirth Ct, LA
Adobe Creek Lodge, LAH
Palm Ave, LAFallen Leaf Ln, LA
*David represented the buyer.
David Troyer represented
117 sellers and buyers in 2019.
Here are just some of those homes.
DAVIDTROYER.COM
Selling a home can be stressful if you choose the wrong agent.
Be sure David Troyer is one of your choices to interview. You have nothing to lose.
WANT MORE REASONS?Check out David’s reviews on and davidtroyer.com
Why do more home sellers choose David Troyer?
• A single agent simply cannot provide the level of service that The Troyer Group does – you need a specialist to manage every step of the home sale process
• Value added services like staging, property inspection, home inspection, and pest inspection are all paid for by David
• Detailed and budget conscious home preparation is entirely managed by in-house Project Managers (page after page of Troyer Transformations™ at davidtroyer.com speak for themselves)
• The most extensive and expensive (paid for by David) marketing program in the industry with a full-time Marketing Manager and professional advertising agency on retainer
• Full-time, on staff, local employees assist David every step of the sale, freeing up David’s time to spend directly with clients
• For 23 years, David has specialized in this area and for the past 20 years he has been the real estate agent of choice
DAVID TROYER #2 TEAM IN NORTHERN CALIFORNIA
TROYERGROUP
THE
Your home is where our heart is
Milan Dr, SJ
Mountain Laurel Ct, MV*
Sequoia Dr, LA
Farndon Ave, LA*
PRSRT STDU.S. Postage
PAIDSan Francisco, CAPermit No. 2001
David Troyer represented 117 buyers and sellers in Silicon Valley in 2019. It’s results like this that place David as the #2 Team in Northern California and #21 in the United States, per The Wall Street Journal, 2019.
Having come off the first year of declining prices since the recession lows in 2010,
many are wondering if this is a trend to anticipate in 2020. I believe that over the next 3 years, this window in 2020 might be the best time to sell and I encourage sellers to not try and time the market. If you need to sell in the next couple of years, I would not wait.
Here are my insights (and I would love to discuss them with you in detail):
• The stock market was very robust in 2019 with the S&P up nearly 30% at $3,231 and the DOW finishing with a 24% increase to $28,584. The stock market has always been a contributing factor to our real estate market, but this is the first year I can remember where the stock market and real estate prices were not on track with one another. The gains made by many in 2019 created new wealth that should result in new buyers.
• Interest rates remain at historic lows, which is very encouraging for 2020 buyers. It is an incredible opportunity for buyers right now. With the uncertainty of a presidential election ahead, the low interest rates may not be sustainable.
• Many Silicon Valley companies went public in 2019, including Uber, Lyft, and Pinterest. For many of those employees, vesting periods
may allow them to have the necessary funds in 2020 to purchase a home, resulting in an onslaught of new wealth and buyers.
• The reduced limit on deductions of mortgage interest and property taxes effective in 2019 may have had an impact on buyers. It’s still too early to tell how this tax law change will impact the real estate market in 2020 and in the long run.
• For affordability, lower-priced homes and condos/townhomes will continue to be in high demand in 2020.
• The strength of Silicon Valley employment centers will continue to be a tour de force in our real estate market in 2020. More employees, more housing needed.
I remain optimistic on the long-term value of owning a home in Palo Alto, which continues to be one of the best places to live in the Bay Area and was ranked #6 on Forbes’ list of 500 most expensive ZIP codes in the country.
If your home is currently listed for sale, this is not intended as a solicitation of that listing. Information in this report is deemed reliable, but not guaranteed. ©Marketing Designs, Inc. 650.802.0888 marketingdesigns.net
Your home is where our heart is
TROYERGROUP
THE
2019 PALO ALTO CONDO/TOWNHOME REAL ESTATE
Prices Declined
55% Sold Over List Price
Dramatic Drop in Number of Sales
DAVID TROYERYOUR PALO ALTO SPECIALIST
David Troyer • Intero496 First Street, Suite 200 • Los Altos, CA 94022
2019 PALO ALTO CONDO/TOWNHOME REAL ESTATE REVIEW
DAVID TROYER Lic. #01234450
650.440.5076 | [email protected] | DAVIDTROYER.COM