Real Estate Articles
Members Discuss Buyers, Value Neighborhoods in Palo Alto
Group leaders share their group's consensus on the status of the local market, buyer preferences and value neighborhoods.
At Wednesday's Palo Alto District Market Intelligence Update, District Chair Michael Dreyfus shared Q1 local market data and members broke into groups to discuss the market, buyer preferences and value neighborhoods in Palo Alto. A live poll of about 40 members present was also conducted on these topics and members' expectations for the second quarter.
Many of those present characterized their business as up and busy. When asked if they felt buyers who want to live in Palo Alto are now looking elsewhere because of high prices, the general consensus from the group discussions is Palo Alto is still the place to be, especially for high-end buyers above $2.5 million. Most buyers at these high price points are hanging tough and adamant about wanting to live in Palo Alto for various reasons, like convenience of jobs and the schools. International buyers, like Chinese buyers from overseas, are more focused on Palo Alto because they see it as a "luxury brand," according to the REALTORS®.
There were also REALTORS® who said they have clients looking in neighboring cities like San Carlos, Redwood City and Mountain View, where their buyers feel they can get value for what they get at their price point. Some families, too, feel students experience more stress in the Palo Alto schools.
Members discussed Palo Alto neighborhoods in detail, including the most coveted neighborhoods at different price points. At the $2.5 million or less price point, REALTORS® said the coveted neighborhoods would be Midtown, South Palo Alto, Barron Park and Ventura. At the $2.5-4 million bracket, there appeared to be a preference for north Palo Alto neighborhoods like the Community Center and Green Gables. For buyers at $4-$6 million and $6 million and up levels, Old Palo Alto and Crescent Park were the coveted neighborhoods.
The Palo Alto REALTORS® noted Old Palo Alto has the greatest value, especially internationally, because it is a well-established neighborhood with tree-lined streets and high-profile residents. It is the coveted neighborhood for buyers with no financial limitations.
As for future inventory, according to the live poll conducted, Palo Alto REALTORS® are expecting some listings in the second quarter, most of which would be in the $4-6 million price point.
Dreyfus encouraged members to use the information they gather at these meeting in their business. REALTORS® have the edge when they have detailed information about the neighborhoods and buyer preferences, which online real estate companies cannot provide.
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The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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