One of the first things to know about the Menlo Park market is that it exists in the shadow of the Palo Alto market. The next blog I do will contrast and compare of the two markets. Today's is about Menlo Park.
In a recent article in the San Fransisco Chronicle, the Mortgage Bankers Association has reported that mortgage applications have risen 7% in the past week. But here's the really important information. Applications to refinance existing mortgages have risen 9% and application for new mortgages have fallen 2% in the past week. They are down 35% since the same time last year. Mortgages are at the lowest they have been since 1971! The average mortgage rate for a conforming 30-year fixed loan is at about 4.58%.
So what does that mean to the Buyer or Seller in Menlo Park? Interest rates being so low means that the Buyer can get more house for the money. Did you miss out on the 8% Tax Credit that expired at the end of April? No worries, this new interest rate will save you more that $8000 over time. The big question is whether or not you can qualify for the loan you want.
This is good for Sellers, too. The decrease in the interest rate opens your home to a whole new batch of buyers. The big question is whether or not they can qualify for the loan they want.
So what was the market activity during June, 2010. In Menlo Park west of 101 there were 38 sales. The highest sale price was $4,700,000 with an original list price of $5,100,000. The lowest sale price was $689,000 with an original list price of $748,000. This home was on the market in April and could probably have qualified for the Tax Credit, but it didn't sell until after the deadline. Days on the market have changed during the second quarter of this year. Only six of the 38 sold homes were on the market for more that 100 days. Sixteen of the sold home sold in 14 days or less. Wow! That's like the good old days, except I think this means that agents are being more successful in helping Sellers understand how to price in today's market. Speaking of the good old days, 21 of the properties sold at or above asking.
Marge Draper, REALTOR
KELLER WILLIAMS REALTY MENLO PARK