Thanks all for your advise. We end up finding our dream house in Los Altos. We will revisit West Menlo in a few years. Now we are very happy. Light at the end of the tunnel is really the darkest but it all pays off. Thanks again!

Teresa
I know trying to buy house in a desriable area like west Menlo Park can be frustrating.
Your story is a good illustration that one can never time the market.
In my experience selling Menlo Park real estate since 1978, the market can heat up quickly and prices jump in a short period of time.
Interest rates have dropped over the past 6 months and while still in a recession, people are generally more optimistic about the economy now than they were 6 months ago.
Prices have come down from the peak but they are now at a level where a long-term buyer can see the excellent value the current prices offer.
Unlike many buyers who think they can predict the future and when the bottom occurs, it appears you are out there actively trying to buy a house.
Hang in there, it will come together for you soon.

Menlo Park in general I agree. But I've been outbid in West Menlo for couple houses so far. Well-priced houses with good location and lot size are taken in a blink of eyes. Same thing in Los Altos and Palo Alto. My most recent interest ended up 11 offers and I didn't win either. Bank told me there are lots of pre-approvals in recent weeks. It's getting hotter. I kind of think I missed the chance not buying in Feb/March.

I think if you'll study the recent home sales trends in Menlo Park, you'll see very few places have sold in west menlo in the past couple months. Homes are just sitting there, and frequently sellers are taking them off the market for a while and trying again later. Spring/early summer is the season when there are more sales.... but barely this year. People can't get super jumbo mortgages, and their investments tanked this past winter, and buyers can't sell their old place. It's a triple whammy.

Hi Teresa.

John is very right about the volatility of the stats in this area since there really are very low volumes of sold homes relative to other markets no matter how hot the market may get.

If you are looking to keep track of the homes in that area, I can set you up on a free active, pending, and sold listing alert for homes in your price range in Sharon Heights. Please follow the link below to getmy email and send me a message!

Hi Teresa,

I wouldn't worry too much over the prices increasing in just one month (March to April). With the number of sold homes in any particular area being so small, it is easy to have the data get skewed in one direction or another. Even quarterly in some of these areas it is difficult to pick out trends simply based on raw numbers. Now, if the price increase holds over several months, then it may represent a real market shift.

And remember that spring is usually the busiest time for both buying and selling. That is, there are more homes on the market (hence more choices) as well as more buyers looking to change school districts, etc. This does not always lead to increased (or decreased) prices.

John Barman

Thanks Matt. I am aiming for an entry house in University Heights/Sharon Heights (301,302). I do witness the price gone up 100K approx. in April compare to March. The supply is so low yet the schools so excellent. Like you say, it's so unknown. I guess I will have to have my fingers-crossed after the spring peak.

Hi Teresa.

I think the definition of "West" Menlo will differ between person; however, I tend to draw the line at the 101 freeway. On the Western side, you have The Willows, Vintage Oaks, Menlo Oaks, Linfield Oaks, Allied Arts/Downtown, Central Menlo, The Unincorporated County Area by the Alameda, and Sharon Heights.

About the bottom. I don't think you will get a definitive answer to that question since no one really knows. Is it possible that prices could drop more this year? Yes. Is it possible that prices stabilize this year? Yes. It will depend on a lot of economic factors to help restore confidence and wealth in the country. Any Realtor here will be able to give you historical stats and perspective, but the ultimate answer to this questions will have to answered by you.

Thanks a lot for your responses! Both very helpful. If you don't mind two follow-up questions:
1. Where is exactly the boundary for West Menlo?
2. At this point, as a local realtor, do you think we've seen the bottom for West Menlo? I am not trying to time the market, but am curious whether the recent sales have more to do with the peak season or the much encouraged market.

Hi Teresa,

Arn gives a good answer below. The one tidbit I would add is that for buyers I like the November-December time frame. Most sellers don't want to have their home on the market over the holidays (or be moving), and many buyers start focusing on the holidays as well.

That being said, you aren't likely to find a huge discount during this time of year, either. There are a lot of people that want to be in West Menlo Park, so when fairly priced homes hit the market they usually don't last long.

Good Luck,

John Barman
Coldwell Banker

Teresa
West Menlo os a very diesriable area and demand is generally strong.
The current market is slower than typical but well-priced homes will st ill sell quickly.
Activity (the number of sales) usually is highest March April May with a slow down as summer goes on and then another pick up in September and October.
That being said, each year is different.
When you ask about "better months for buyers", I assume you mean when the number of competing buyers is low. Is that right?
The market in Menlo Park is not very seasonal, there is NOT a time of the year where you can buy for 10% less than at other times in the year.
My advice is that when you find a house you like , fits your needs, and can afford - make a strong offer and go for it.
I hvae been a Menlo Park real estate agent for 31 years.
Menlo Park has excellent schools, a very nice downtown, promximity to Stanford, and a wonderful Civic Center at Burgess.