Los Altos Market Snapshot: Fewer Sales, Strong Prices, and Election Year Trends
Note: A version of this article was originally published in the Los Altos Town Crier on September 17, 2024.
Number of sales from 2023 compared to number of sales in 2024.
Data from MLSListings/Alex Wang
Trends are emerging as August comes to an end and the election year kicks off. Included in this column are insights into total sales, the best performing month, where the largest decline was, and other pertinent information that provide a window into the Los Altos real estate scene.
Insights:
Total Sales:
There was a decline of 25.52% in total sales from 2023 (182 sales) to 2024 (145 sales).
Best Performing Month:
January 2024 saw the highest percentage increase in sales (+33.33%). This month bucked the trend, seeing a higher number of sales in 2024 compared to 2023. Was it fueled by the expectation of rates dropping early in the year? Buyers may have acted early to avoid a more competitive spring market in a lower-rate environment.
Largest Decline:
April 2024 experienced the most significant decline in sales, dropping by 92.86%. This indicates either a sharp market downturn or external factors affecting sales. Where’s the interest rate drop we’ve been waiting for?
Mid-Year Trend:
Despite a decline overall, June 2024 shows a slight improvement over June 2023, with a 4% increase in sales. However, this uptick was not sustained in July and August, as both months saw declines of 45.45% and 30.00%, respectively.
Although monthly fluctuations are important, broader trends in inventory and external factors have a more significant impact on shaping the overall market. Despite slower sales volume, median home prices in Los Altos remain robust at around $4.2 million, primarily due to a persistent imbalance between high demand and limited supply, resulting in stable prices and continuing to fuel competitive multiple-bid situations.
Historically, election years tend to support more stable and consistent real estate markets, as many buyers and sellers prefer to wait for the political climate to settle before making major decisions. With the potential for a rate decrease on the horizon and an approaching election that may stabilize consumer confidence, there’s room for continued optimism as we head into the latter part of 2024. While the market may be smaller in terms of transactions, it continues to show resilience. Strong demand has kept home values steady, indicating that Los Altos remains a desirable area, even in less certain times.
