To keep things in perspective, it is good to keep an eye on the inventory of homes for sale at a given point in time. Here is the inventory of all properties for sale (houses + PUD/condos) both in the whole County of Santa Clara, and in the area limited to the five Cities: Los Altos, Los Altos Hills, Palo Alto, Mountain View, and Menlo Park:
Lower inventory = tendency for prices to be sustained, or rise.
There are signifcantly fewer properties for sale now than last year. It is also interesting to note that the luxury market (over $1 million) has fewer homes on the market, which is reflecting the fact that the market has been more active in the past months.
Here in the Bay Area, as noted many times, demand is showing pretty strong fairly consistently.
It is worth noting again that about 30% of houses sell for over asking price in the County of Santa Clara.
A lot of them are foreclosures. - A foreclosure sale does not always mean that it is a fabulous deal, moneywise.
Interested in the same figures for only condominiums for instance? Let me know.