Watching the price of homes in Mountain View is easy: just keep looking up. The market here has demonstrated consistent increases in the price of single-family homes since May 2013, and the price is now threatening to break past the $2 million mark. The median price of a single-family home in Mountain View in May 2015 was $1,860,000, an increase of $630,000 or 51% over the median $1,230,000 from May two years ago.
During these two years, the monthly median price has never dropped below $1.1 million, and it has never passed $2 million, although it definitely seems headed in that direction now. The year started out with a price of sold homes of $1,394,000 in January. It’s been all up since then.
• January: $1,394,000 • February: $1,505,000 • March: $1,525,000 • April: $1,835,000 • May: $1,860,000
A reasonable amount of price fluctuation has occurred during the last two years, but the rise has been consistent, overall. For example, the monthly median price went from $1,472,500 in December 2013 down to $1,170,000 in January before jumping back up to $1,603,000 in February. The price had decreased to $1,325,000 in April last year then hit $1,567,500 five months later in September.
Several factors contribute to market price fluctuation, but looking at the numbers over a two-year period, we see a definite increase, even with some slight stumbling here and there.
And this is no surprise. Silicon Valley real estate is considered the prime of the prime within the United States. The buyer pool is aggressively coming into deals with offers that exceed the list price of homes by 10% or more in some cities. In addition, many offers are all-cash, making it easy for homeowners to say yes to a fast sale.
Let’s look at the prices for homes in Mountain View and in several other Silicon Valley communities in May 2013 and May 2015.
• Mountain View: $1,230,000 / $1,860,000 • Los Altos: $1,830,000 / $2,612,500 • Menlo Park: $1,312,500 / $2,026,500 • Palo Alto: $2,100,000 / $2,750,000 • Redwood City: $975,565 / $1,477,500
Very fast sales
Finally, let’s see how fast Mountain View homes are selling. The days on the market (DOM) statistic tells us how long homes spend on the market before being sold. For May 2015, the average days on the market for all sold homes (27) was a mere 10 days. That number is the lowest in more than two years and was equaled only twice: in February 2015 and in March 2014.
The average DOM for the 12 months ending in May 2015 was 14.25. All of these numbers are very low, even by Silicon Valley standards. And while in some months the number of days in which homes are sold might fluctuate (65 in January 2014; 29 in September 2013) the advice to serious buyers is don’t put off action when you see a home you like, otherwise it might be gone next time you look for it.