Los Altos is consistently ranked among the most desirable communities in the State.  Great schools, awesome weather, quaint downtown, and of course those wonderful homes on 1/4 acres (or more) lots.

The Bay Area is a big place, both in area and population.  Communities are as varied here as as any major metropolitan area.  For background, there are over 1.8M people living in Santa Clara County, and almost 7M in the Bay Area.

However, per the 2010 census, there are only 29K people who actually live in Los Altos.  The City covers just 6 square miles, has two zip codes (94022 & 94024), and is located in the heart of Silicon Valley.  As a community, it’s in high demand.

So, it should come as no surprise that Los Altos  has made yet another list.  This time, it is listed among those communities that saw the greatest increase of year/year home sales over $1M.  Below, is a slightly edited article written for the Silicon Valley Community Newspaper group.  Enjoy …

The number of California homes that sold for $1 million or more in 2010 rose for the first time in five years, a sign that certain segments of the economy improved and high-end home shoppers went bargain hunting, a real estate information service reported.

Los Altos was among 25 communities that saw the highest gain of million-dollar homes sold last year.

Statewide, 22,529 homes sold for $1 million or more last year, up 21 percent from 2009 and the highest level since 2008, when 24,436 homes sold for $1 million-plus, according to the DataQuick report. Million-dollar sales peaked in 2005 at 54,773, after which they declined each year through 2009.  The median-sized million-dollar home was 2,840 square feet, with four bedrooms and three bathrooms. Additionally, the median statewide price paid per square foot for all million-dollar homes in 2010 was $601, down from $605 in 2009.

For South Los Altos (94024), 243 homes sold in 2010, up from 211 homes, with the most expensive home sold at $4.75 million.  For North Los Altos (94022), 218 homes sold in 2010, up from 174, with the most expensive home $6.15 million.

“It’s not surprising that the high-end market has remained strong in our Silicon Valley neighborhoods. People buying in these areas will typically have higher income and are willing to pay more for a prime location. Our excellent schools and higher education institutions, highly educated workforce, and a great mix of shopping and services make the region ideal,” said Gene Lentz, president of the Silicon Valley Association of Realtors.

No, the important housing story for us is actually pretty fair news: Bay Area home sales were up in January compared to the same month a year ago. According to the real estate monitoring service DataQuick, 4,966 homes sold in early 2011, which was lower than December numbers but higher than January last year.

January and February typically are slow months for housing, and DataQuick pointed out that this makes it difficult to use these months as trend predictors. But a year-over-year increase is a good thing and could mean we are indeed seeing the beginning of that slow recovery we’ve all been talking about for 2011.

The fact that a home in my neighborhood just sold in less than three weeks also contributes to my optimism.

What else is new as we dig through the first set of numbers for 2011 in the Bay Area?

- The median price for new and resale houses and condos decreased to $338,000 in January from $350,000 a year ago.

- Higher-cost homes seem to still be seeing the affects of the credit crisis, which made adjustable-rate mortgages and “jumbo” loans more difficult to get. Jumbo loans accounted for 60% of the Bay Area home loan market more than three years ago, and accounted for only 27.1% of the market in January of this year.

- Foreclosure activity remains high, but is below the peak levels reached two years ago, the report said.

Not stellar, but not a bad beginning to 2011.

As we work through the year, remember the importance of discovering the data in your local market. What’s being talked about at the national level in real estate very often has nothing to do with your home sale or purchase.

To find out more about the Los Altos area market, I recommend that you call David & Carol Casas.

Gino Blefari, Intero CEO, wrote this blog post to share with MoveIntoLosAltos.com

Of course, one could postulate that the economic uncertainty created a slow market in the fall of 2008. However, it is important to note that there was a decrease of only 14%, year-over-year, in total homes sold in Los Altos, from October 2007 to October 2008. Basically, the local market remained viable, albeit somewhat unsettled.

Today, there are still roughly 85 homes available to buy in all of Los Altos. But remember, there are over 10,700 total homes in the city. So, available inventory remains tight.

Separately, an interesting dynamic is occurring in this tight market: the length of time a home is staying on the market unsold. The average days of all homes currently on market for sale in Los Altos is just over 150 days. That’s 5+ months.

What’s creating this disparity? The key drivers really come down to four factors: 1) realistic pricing of the property; 2) positioning/visibility of the home in today’s market; 3) seller motivation; and 4) effective utilization of available marketing tools to reach today’s buyer.

As a case in point, our current listing at 269 Langton Avenue sold in just 14 days. That’s in stark contrast to the average days on market for those other homes in Los Altos. We put together an effective plan, executed on that plan in partnership with the homeowner, and developed an outreach campaign to attract the maximum number of agents and interested buyers.

For Langton, we had over 300 Real Estate Agents stop by the home on Broker Tour, just two Friday’s ago. This was one of the highest turnouts achieved for the tour that day. Buyer traffic through the property was consistent from the time we hit the market. Just over 200 potential buyers visited the property through open house. Additionally, an average of 2 private showings occurred each day once the home was available.

So, the market is strong, but inventory is low. There are a number of buyers looking to move into Los Altos, but they are strategically examining the available options. With a strong real estate team in place, a seller or buyer could have a tactical advantage, if they utilize the right tools for today’s market.

If you are looking to move into Los Altos, or simply move across town, we are confident that we can help you. Call us today at 650-823-1434. We would love the opportunity to earn your business.