Months of inventory #s are indeed lower in Palo Alto (about 2.9) versus Saratoga (which is about 6.2) but then it depends on the price range too that you are looking at.

What is more desirable is kind of subjective IMHO. It depends on your criteria as to which area is desirable. For me neighborhood, good sized backyard and schools are important and so Saratoga would rule over Palo Alto.

It probably depends on how you look at it and the time periods involved. If you take quarterly statistics for Aterton from 2nd quarter 2006 to 1st quarter 2009 Atherton average prices are down 41% and median price down 53%. Take the same period in Saratoga average prices are down 14% and median down 22%. Prices are lower on average in Saratoga, but they haven't fallen more. It appears Saratoga is a more balanced market and anyone who bought in Atherton during that time period would most likely reconsider if they knew the final outcome at this point.
Everybody is unique in their choices, but ruling out job location, schools, etc if I just picked one location over the other as to where I would want to live, I too would take Saratoga(Los Altos Hills isn't a choice is it?). So when you make your decision make it for you, and don't go off what other people think. They aren't going to be there with you :)

Glen Mitchell
Broker

I live and work in Saratoga. One factor that strongly effects the pricing of Saratoga real estate is the school district. Saratoga High is a US News and World Report Gold Medal Winner (within the top 100 Nationally). At the state level it is ranked just behind Palo Alto. As a result, homes which fall within the Saratoga school district have held their values well declining slightly year over year. We are actually seeing multiple offers on many homes. That being said, when looking at the data closely you will find homes that do not fall within the Saratoga school district have declined at a much higher rate. Overall, Saratoga is a strong market to consider.

Good luck with the home search and please let me know if I can assist with any details.

April

Hi,
ALL real estate is priced by supply and demand. If the price is falling in a given area then the damand is low versus the supply. If the supply and demand are about the same prices remain stable, and if demand exceeds supply prices rise. Both Nova and Roland are correct in their assessments, the above is the way ANY real estate market is priced.
Hope this helps,

Regards,
Allyson

PA is certainly more desirable than LG/Saratoga - remember the rule - closer to stanford is expensive!
Also, LG is so far from any central south bay activity..schools are better in PA too.

Hi Pa_home_buyer,
Both the PA/Atherton area and the LG/Saratoga areas are very desirable. You question why others claim that PA is preferable, but that opinion is confirmed as you state the fact of prices being stabler in PA/A. Writing a check is a very compelling expression of opinion. However, it really only matters which area you prefer and you may be able to take advantage of better bargains in Los Gatos/Monte Sereno/Saratoga.
If you need any hlep with your search, please contact me.

Take care,
Roland