Archive for the 'Menlo Park Real Estate' Category
West Menlo Park 2008 Year in Review
Here is a review of the West Menlo neighborhood of Menlo Park, California residential real estate market in 2008:
Median price increased to $2,326,000 in 2008 from $1,983,50000 in 2007 – an 17.3% increase.
Average price increased to $2,422,640 in 2008 from $2,316,000 in 2007 – an 4.6% increase.
The number of sales decreased to 41 in 2008 from 52 in 2007 – a 21.2% decrease.
Current number of active listings is 10 compared to 5 at the same date in 2007 – an increase of 200%.
The sales per list price ratio increased to 100.2% in 2008 from 99.9% in 2007 – a increase of 0.2%.
Days on market decreased to 23 days in 2008 from 37 days in 2007 – an decrease of 36.2%.
Days of inventory increased to about 90 days in 2008 from about 45 in 2007.
Much of this data is shown in the charts below.
Market Data, for most cities on the San Francisco Peninsula, can be obtained by clicking on the market reports link above.
Allied Arts and Downtown Menlo Park 2008 Year in Review
Here is a review of the Allied Arts and Downtown neighborhoods of Menlo Park, California residential real estate market in 2008:
Median price decreased to $1,400,000 in 2008 from $1,415,000 in 2007 – a 1.1% decrease.
Average price decreased to $1,464,560 in 2008 from $1,638,820 in 2007 – a 10.6% decrease.
The number of sales decreased to 25 in 2008 from 37 in 2007 – a 32.4% decrease.
Current number of active listings is 7 compared to 1 at the same date in 2007 – an increase of 600%.
The sales per list price ratio dropped to 99.8% in 2008 from 102.7% in 2007 – a decrease of 2.8%.
Days on market increased to 30 days in 2008 from 24 days in 2007 – an increase of 25.3%.
Days of inventory increased to a little over 100 days in 2008 from about 60 in 2007.
Much of this data is shown in the charts below.
Market Data, for most cities on the San Francisco Peninsula, can be obtained by clicking on the market reports link above.
Menlo Park 2008 Year in review
Here is a review of the Menlo Park, California residential real estate market in 2008:
Median price increased to $1,392,500 in 2008 from $1,295,000 in 2007 – a 7.5% increase.
Average price increased to $1,555,810 in 2008 from $1,455,860 in 2007 – a 6.9% increase.
The number of sales decreased to 298 from 395 in 2007 – a 24.6% decrease.
Current number of active listings is 86 compared to 75 at the same date in 2007 – an increase of 14.7%.
The sales per list price ratio dropped to 99.6% in 2008 from 101.4% in 2007 – a decrease of 1.8%.
Days on market increased to 37 days in 2008 from 31 days in 2007 – an increase of 19.9%.
Days of inventory increased to nearly 120 days in 2008 from about 85 in 2007.
Much of this data is shown in the charts below.
Market Data, for most cities on the San Francisco Peninsula, can be obtained by clicking on the market reports link above.
San Carlos Menlo Park Palo Alto inventory levels
76 homes for sale in San Carlos at the present time.
115 homes for sale in Menlo Park at the present time.
92 homes for sale in Palo Alto at the present time.
Inventory in all 3 cities has dropped in the past month as owners take their homes off the market for the holidays or perhaps some owners realize they can not sell their homes for the price they want.
San Carlos Menlo Park Palo Alto % of listings with prices decreases
What percentage of single family homes have had price reductions in San Carlos, Menlo Park, and Palo Alto?
See chart below tracking this data throughout the year.
At the beginning of 2008, about 47% of the homes listed in San Carlos had price reductions. This percentage dropped to about 35% during the psring buying season and then has steadily increased throughout the year to almost 50% of the home currently listed having undergone price reductions.
The pattern for Menlo Park homes in 2008 is similar – starting the year with 34% of the listings having price reduction decreasing in spring to about 30% and rising for the balance of the year to 43% of homes with price reductions.
The pattern in Palo Alto is different than in San Carlos and Menlo Park. Only 20% of the Palo Alto home listings had price reductions at the beginning of 2008. This percentage has increased steadily through the year to 40% at present.
It appears that the real estate slowdown effecting many other areas has finally started to hit Palo Alto as the year went on.
Investor Alert – SF Bay Area homes break even with 20% down
For many years, I have had numerous clients contact me looking to buy rental real estate on the San Francisco Peninsula that would “break even” with 20 % down. Until now, I would say “that is not possible – you need 40% down to “break even” on a single family home.
Banks and have other lenders price their foreclosed homes very aggressively.
Multiple offers are not uncommon.
Let’s look at sample purchase for $250,000.
$250,000 less $50,000 down (20%) leaves $200,000 loan.
$200,000 at 6.5% has a monthly payment of $1,264.
Property taxes will be $250 per month.
Insurance will be $75 per month.
Total monthly ownership cost $1,589.
Your typical 3 bedroom home in these areas will rent for $1800.
In a Section 8 program, the County will pay 80% to 90% of the contract rent leaving only a small amount to collect from the occupant tenant.
Buy San Francisco Peninsula real estate and break even with 20% down.
You used to have to go to Texes to get cash flow – now you can get it right here.
Contact me and let’s get started.
Menlo Park home sales at their lowest levels in 11 years
November Menlo Park home sales are at their lowest levels in 11 years.
In November 2008, 16 Menlo Park home sales closed escrow.
Compared to November Menlo Park Home Sales as follows:
2007 – 22 closed Menlo Park home sales
2006 – 38 closed Menlo Park home sales
2005 – 36 closed Menlo Park home sales
2004 – 50 closed Menlo Park home sales
2003 – 35 closed Menlo Park home sales
2002 – 37 closed Menlo Park home sales
2001 – 37 closed Menlo Park home sales
2000 – 31 closed Menlo Park home sales
1999 – 40 closed Menlo Park home sales
1998 – 26 closed Menlo Park home sales
16 closed sales in November 2008 for Menlo Park is less than 50% of the 11 year average of approximately 34 Menlo Park home sales in the month of November.
I will compare to Palo Alto in posts to follow.
Menlo Park Real Estate Days on Market by Price Range
Is any price range of the Menlo Park real estate market selling more quickly or more slowly than other price ranges?
Breaking the City of Menlo Park market down into 4 quartiles or prices ranges as follows:
First quartile – top 25% priced homes in Menlo Park – median price – $2,595,000
Second quartile – next 25% priced homes in Menlo Park – median price – $1,625,000
Third quartile – the next 25% priced homes in Menlo Park – median price – $988,000
Forth quartile – the lowest 25% priced homes in Menlo Park – median price – $399,900
Take a look at the chart below:
One striking feature of the above chart is that the least expensive homes in Menlo Park have the LONGEST days on market. The median price of the lowest priced quartile (i.e. the 4th quartile) is $399,900. Just about all of these homes are in the Belle Haven scetion of Menlo Park east of Highway 101. This neighborhood market has been hurt by numerous foreclosures due to the extensive use of sub-prime financing to purchase homes in Belle Haven in the past few years.
It can also be noted that the most expensive homes in Menlo Park (median price $2,595,000) has in general had the lowest days on market thoughout for the year.
The middle 2 quartiles show the same trend. Typically the higher the price the lower the days on market.
IN 2008 in Menlo Park, the more expensive the home that more likely for a lower days on market.
Menlo Park Real Estate 2007 v 2008
How does the current 2008 real estate market in Menlo Park compare to the market in 2007?
Below you will find median prices for both single family homes and condominiums/townhouses in Menlo Park for the both 2 years.
The median price for both single family homes in Menlo Park decreased during the 2nd half of 2007 and has fluctuated dramatically during 2008 finishing higher at present than at the start of the year.
The median price for condominium/townhouse in Menlo Park increased during the 2nd hlaf of the 2007 and flucuated dramatically during 2008 and is finishing at about the same level as the year started.
San Carlos Menlo Park Palo Alto Market Action Index 2008
Altos Research has developed a method (the Market Action Index) to quickly evaluate how strong or weak a current market is. The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall. Residential house prices are a function of supply and demand, and market MARKET ACTION INDEX conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s Market zone for a long period, prices are likely in for a downward correction.
The MAI forSan Carlos and Menlo Park has been between 18 and 25 all year – indicating a buyers’ market for 2008.
The MAI for Palo Alto started above 30 – indicating a sellers’ market – but then dropped below 30 on its way to 20 indicating a buyers’ market even in Palo Alto.
Please let me know if you would like weekly or monthly market reports emailed to you.
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