Douglas, you are still thinking average sales price and thinking there is something wrong with the Ventura neighborhood. The Ventura neighborhood is a GOOD neighborhood! The average lot size is a little smaller than many other neighborhoods so builders have not built as many new 3000 sf houses which have pushed up average house prices in neighborhoods such as the South Palo Alto neighborhood. The Ventura neighborhood is a GOOD neighborhood whose average house size is significantly smaller than the average house sold in Palo Alto.
The most important thing is that REAL buyers visit homes and compare them to each other. 3396 Park Blvd is a gorgeous fairly new home and compares very favorably with the other homes that are for sale. A REAL buyer will compare them.
The DOM number is a small issue but it is a real issue. When REAL buyers are fatigued or running out of time they may not look at homes which have a high DOM. When REAL buyers are in their prime condition they will know every house that is for sale in their price range. Palo Alto isn't very big.
A real issue with a home such as the gorgeous 3396 Park Blvd is that it is one of the best houses in the neighborhood. Buyers are cautious about buying the best house in a neighborhood, sometimes preferring to buy an average house in a neighborhood with a higher average price. I had a buyer buy a very small not particularly good home because the mailing address said Atherton.
The Ventura neighborhood could be at the beginning or a knockdown - expand period. The group of lowest priced houses in Palo Alto is the Ventura neighborhood because they have NOT ALREADY REBUILT. If we had not gone through the downturn in 2008, Ventura may have already begun a building craze.
When holding an open house it is not unusual for a visitor to compare the listed price to a computer/statistics generated price from either Trulia or Zillow. Their comments can immediately show that they are not REAL buyers. A buyer who has made offers, had them rejected for being too low, compares houses to houses.
Emotion can interfere at the last moment.
I've also changed the address of a house I was selling. You will see some buildings which do not have a 13th floor. I had a home for sale which had a house number often associated with bad things to Chinese people. I got the City of Palo Alto to change the number.
Yes there are marketing tricks to catch the attention of buyers, changes made to avoid emotions, and many other things that need to be done to make sure I sell every home at a good price for my seller. We are entering a period when the average DOM increases. Prices do not drop even though we are entering a seasonal period of higher average DOM. Don't mis-read the tea leaves.
If you are focused on statistics, look at the Old Palo Alto neighborhood. Its average square foot sales price is probably the highest in Palo Alto. Crescent Park which also has a reputation as being one of the highest priced neighborhoods also has a high square foot price. People will pay a premium price to live near other wealthy successful people but the main reason for the higher average house sales price is the LARGER average house size. Palo Alto is small. There are differences between values in neighborhoods but the differences are much smaller than the differences in the average house such as size.
3396 Park Blvd is a newer gorgeous home offered for sale at a competitive price and is located in a good neighborhood whose average house size is less than the average house size in Palo Alto. It is not a 3000 sf McMansion.
It is located near the California Ave shopping district which is remodeling.
Don't ignore average home size when looking at average sales price.