Thursday, June 7, 2012

Local Housing: Quarterly Prices: a perspective...

Here is a graph that I update regularly for the Cities around here:
Quarterly prices of houses since 2007 in the Valley:

Although we have to be careful with any statistical figures, one can definitely see a trend for the Cities of Los Altos and Palo Alto.
The average price of homes in a given area can be influenced by several factors: just because the graph points upwards, it does not necessarily mean that prices are going up. Instead, you could have just a few large and very expensive homes raising the average in a tight market where few homes have sold.
Conversely, you could have a lot of entry-level houses sold and fewer more expensive ones, which would keep the average price low, even though you may have an actual up-market.

However, in this case these graphs confirm what we have been seeing in the past few months: a large demand, not satisfied by enough inventory, resulting in a sharp rise in housing prices.

useful links

Community Services Agency - worthy of interest...

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