Bright outlook for Los Altos and surrounding real estate market

Editor’s Note: This article originally appeared in the Los Altos Town Crier

If the first quarter of this year is any indication, spring 2024 is shaping up to be a good time to sell a home in the Los Altos area. The median cost for a single-family home in Los Altos during the past three months was $4,203,225. As of March 25, a total of 35 homes had sold in the new year for an average of 107% of their list price and were under contract in an average of 12 days. We are seeing regular instances of multiple offers in our area, which is an indication of a strong seller’s market. 

Any time you take a look at the real estate market that is this local you are impacted by the sellers in that community who were selling during a given time – we generally see very low inventories in Los Altos, Mountain View and Los Altos Hills as these highly sought-after locations are valued greatly by those who live here, meaning the laws of supply and demand tip toward low supply/high demand. The snapshot I just gave you is based on a total of 27 homes closing in January, February and the first three weeks of March.

Reasons for optimism
Still, in terms of the general shape our local real estate market seems to be taking for this spring season, we see lots of reasons for optimism. The short “days on market” means it’s still competitive for buyers out there, though it seems they can look forward to lower borrowing rates before long. The Federal Reserve has clarified for us that they expect three interest rate reductions this year. This is really good news for buyers and sellers alike – for buyers, lower interest rates increase their purchasing power, while for sellers, just seeing more buyers be able to come to the table is positive. 

When we first opened our Los Altos office in the midst of the pandemic, we had no idea what kind of market we’d be dealing with. Now we all know it was an extremely active and prosperous time, though inflation and rising interest rates certainly tempered general consumer confidence and tested all of us a bit. The real estate market can take some time to react to broader economic macro-trends and we might by now have been starting to see things level off. 

But Silicon Valley’s work-from-anywhere days seem to be waning, and some who went to places far away are now coming back and some of them are buying. That, combined with the prospect of lower interest rates and continued great quality of life in this area, paints a bright picture here for spring 2024. Another plus is the recent high valuations of the so-called “magnificent seven” tech companies, all of which are a fairly easy drive from this area. Those valuations, combined with lower interest rates in the offing, mean more purchasing power and increased consumer confidence. 

My family and I live here in Los Altos as well.
My three kids span the full gamut of Los Altos schools from elementary and middle to high school where my wife Lily teaches. So, we share your enthusiasm for seeing a healthy local economy and I’d have to say the conversations I have regularly with local residents, homeowners and other realtors have me feeling pretty bullish for at least the short term. I will be writing on local real estate trends in this biweekly column and will continue to share market updates and data as new listings and closed sales hit the MLS. 

In real estate, it seems there is never a dull moment, so I think I’ll have no shortage of topics to write about.
Whether it’s how to renovate for the best ROI, what kinds of floor plans and colors are trending, or the latest in financing trends such as private lending, I’ll be covering a range of topics with a local angle that brings it right home to Los Altos, Los Altos Hills and Mountain View – so stay tuned. We’ve all been watching the press coverage of the latest National Association of Realtors lawsuit, and as soon as I see how that dust settles in our local community, I’ll be sure to address it. The industry is going to take a little while to absorb that one and it’s just too early to tell how it will net out here. Meanwhile, for-sale signs are popping up with the daffodils, spring is in the air and temps aren’t the only thing warming. It seems the real estate market is heating up again this year so follow along with me in the coming weeks!