Palo Alto: On Our Radar

It’s been a while since we have reported on real estate in this high-end university town, but there hasn’t been a whole lot of activity. Nonetheless, we thought an update was warranted. Currently there are only 41 single-family homes on the market in Palo Alto, substantially less than most cities on the Peninsula. This is probably due to the low rate of foreclosures, sub-prime mortgages, and that people are not playing the trade-up game in this market. Prices range from $450,000 to $29,850,000 (if that’s not an enormous spread, I don’t know what is!). I tried to concentrate on those homes that are under the $1mil mark. There were exactly three (3) single family homes on the west side of Highway 101, and each of those homes is on a substandard lot, ranging from 1742 to 2178 sf. This means little or no way to add on, neighbors are within spitting distance, and you will probably have a tough time selling, when the time comes.

The lowest priced property is located at 109 Webster, It is a 2/1.5, 692 sf, on a 2178 sf lot. The original listing price (in early December) was 825,000, which was reduced a week later to $799,000. It has since been reduced one more time to the current $749,000, for a total of 12%. That’s a significant percentage drop for this city.

Number Two on our list is 740 Homer, a 2/1 of 660 sf on a postage-size lot of 1742 sf (in fact most homes in this town are bigger than this lot). The listing states “PRICE DRAMATICALLY REDUCED”—but according to my calculations, it is only a $30,000 or 4% reduction, with the current price being $765,000.

Last up is 612 Palo Alto Avenue (photo at right), a 2/2 of 1033 sf, on another 2178 sf lot. This is actually a re-listing that originally appeared on Sweet Digs back in April. At that time it was priced at $778,000, so the price has actually increased by 9%. It was also originally listed as 740 sf plus a not-to-code bonus room, so the house has miraculously grown. The location is quiet and sits by a creek, but overpriced at $849,000.