Los Altos Hills, CA

Home sales in Los Altos Hills got so bad at one point that there were no sales at all for months. As one of the top 3 luxury markets in the country, it was the perfect example of how escalating prices from the dotcom era resulted in a crash in values and sales. The market actually got soft starting in 2007 but did well going into 2008. However, after that prices drop substantially and sales were fairly low.

In 2009, the market took it's biggest hit with sales actually up about 10% but prices dropping nearly 10%. The super high-end homes were almost not selling at all and buyers were constantly looking for bargains. Other nearby luxury markets such as Atherton and Saratoga also took hits on average sales prices. The bottom occurred in 2010 when the average selling price dropped to $2,590,417, down from the high in 2008 of $2,889,133. The real story is that there were almost zero high-end sales. Most of what was selling was heavily discounted homes. In fact, I sold a new construction home with over 5000sf for $2.65 million that year that had dropped in price from close to $5 million. Buyers assumed discounts were 20-30% in Los Altos Hills. Until late 2010...

In the late Fall of 2010, the market suddenly perked up. Homes priced at the high-end started getting activity and sales, which had languished for much of the year, were really moving. Well priced, well located homes would come on the market and sell relatively quickly. A total of 81 homes sold in 2010 - many in Q4. This continued into 2011 with 100 sales of single-family homes and the market snapping back about 5%. The declining trend had halted and was definitely on the upswing. More importantly, the ultra high-end market was strong. With a $100 million home sold and many others in the $5-10 million range selling, demand was high.

As we continue into 2012, the market is still strong with demand for new homes as good as we've seen in years. Many buyers are looking for land to build on and homes up to $5 million have several buyers interested. Anything priced under $3 million in a good location will sell. While total sales are a bit light, sales prices are up and I expect this trend to continue for the next several months. Based on what properties are pending and what has already sold, it's very realistic to project average selling prices to return to their 2008 highs and possibly go beyond.

Los Altos and Los Altos Hills are premium locations in the heart of Silicon Valley. From the quaint, tree-lined streets and fine restaurants and shops of downtown to the sprawling estates in the Hills, Los Altos offers everything a luxury home buyer could be looking for. But what if you’re on a budget and still want to buy in Los Altos?

Here are Los Altos and Los Altos Hills homes for sale under $1M as of March 3, 2012. To see the MLS listing for a property, request additional information, or to schedule a showing, click on the property’s Price.

Note: There were no Los Altos Hills homes priced under $1M as of today. Current listings in the Hills run from $2,195,000 to $12,750,000.

Visit Silicon Valley MLS Searchto find current listings for properties of all types anywhere in Santa Clara, San Mateo, Santa Cruz, Monterey and San Benito Counties.

Please Contact Usfor help buying or selling Silicon Valley real estate.

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John A. Souerbry & Associates (DRE -01370983) Tel (650) 815-6182 john@jsrealproperty.com

Tags: Los Altos CA homes and land, Los Altos Hills CA homes and land, Silicon Valley homes and land, Los Altos home listings, northern California homes and land, Los Altos real estate agents, Silicon Valley real estate agents

This exceptional opportunity is perfect for the buyer who wants new construction in Los Altos Hills with the ability to fully customize the home to suit their taste. Breaking ground in April 2012, the home will feature a total of 4 bedrooms all with en-suite bathrooms. Two master suites, one upstairs and one downstairs, offer flexible living options. The main floor has a formal living room, formal dining room, den, and gourmet kitchen with adjoining family room. The second floor has living quarters, a theater, and gym.

For a private showing of the property and meeting with the builder to discuss options, please call me. The list price is $4,200,000. All finishes can be customized, subject to allowances.

I'll be holding open this wonderful estate property again this Satuday, February 25th, 2012 from 1-4PM. If you haven't been to this fine estate home before, stop by tomorrow and take a look. Even if you've seen it in the past, come again because the owner/builder has made some significant improvements and additions. This is a completel "turn key" estate, brand new, and NEVER LIVED IN! No other luxury listing in Los Altos Hills offers the ability to move in immediately.

When you're here, take the time to walk the grounds and enjoy the landscaping. This is a very private estate with very little direct visual access to neighbors. If you want to truly get away from the world, this a great place to be. One of the newest changes is the completely landscaped front yard. Lots of grass with a fountain and small creek makes this a grand and pleasant oasis.

The asking price is $7,188,000.

Zillow just published their annual list of the most expensive small towns in America and, as usual, Los Altos Hills came in at #3. It's nice to see our local markets represented in this list but I've learned that the method of calculating the values is flawed.

Zillow takes the median sales price in each town from the month of December (in this case December 2011). From a statistical standpoint, this is full of flaws. For one thing, when you look at Los Altos Hills there are only a few homes sold and the median is rarely an accurate reflection of what is selling. There were very few sales in December and that's a time when bargains are typically sold. Seasonal slowness combined with reduced prices gives a flawed impression of the market.

When you look at the AVERAGE SELLING PRICE (ASP) you get a different perspective, even when looking at an individual month like December. The average selling price in Los Altos Hills was much higher in 2011 overall than the Zillow report. The ASP is a more accurate representation of values when there are fewer data points.

Anyway, congratulations to Los Altos Hills, CA for once again being one of the most expensive places to live in the United States. With the growth in the market, I'm certain we'll see continued price appreciation in 2012.