The Los Altos Hills market mimics the Mountain View, Los Altos, and Palo Alto with regards to median price only. Its market data of MSI, DOM, and sales absorption are different than the other markets due to its extremely high price range driven by its premier location and exclusive homes. Like other Bay Area markets, Los Altos Hills should continue its upward trends, though it will probably be one of the first markets to feel the effects if trends begin to change again.
Due to its higher median price range of $2,376,000, the inventory levels of Los Altos Hills fall into that of a more balanced market, and even at times a buyer’s market. The May 2012 level of inventory is currently sitting at 2.5 months which is a drop of almost five months from April 2012. The DOM for Los Altos Hills is not cyclical like Mountain View or even Los Altos due to the extremely high price range and more exclusive properties.
The chart above reveals that the sales absorption rate for Los Altos Hills was unsteady between May 2010 and May 2012. The fluctuations such as this are to be expected at this more exclusive price range. In May 2012, the current sales absorption rate was 27.3% of properties under contract and 10.4% of properties sold.
The median sales price line for Los Altos Hills more closely follows the line of Mountain View with a slight uptick in late 2010 and a dip until September 2011. At that point, the uptick pace for Los Altos Hills more closely follows the pace of Los Altos.