When trying to understand Menlo Park neighborhood home values for houses, the first and most often real estate trend looked at is either average or median house sales price. The average price can be pushed up by a particularly expensive house being sold. Much less often an especially low price for one or more houses can push the average price down. By looking at both average and median price a quick judgment can be made about any unusually high or low prices
The sales price of a Menlo Park house is affected by its size. Looking at price per square foot gives a partial adjustment for differences between houses. Furthermore if you look at the average size of a Menlo Park house sold you will see that it varies with time. Part of the variation is due to the random nature of which houses are being sold but the trend is for an increase in size with time because when a house is replaced with a newer house, the newer house is almost always larger.
Home buyers and sellers want to know the typical relationship between list price and sales price. This relationship varies with city and time. The plots below show trends for this relationship using color coding which generally highlights changes in the market. More Menlo Park houses being sold over list price is a very good indicator of rising home prices. More houses being sold under list price is a very good indicator of falling house prices.
A quick estimate of how active the Menlo Park real estate market is can be found by looking at the number of houses sold. Locally there is a strong seasonal change in the number of houses sold. The lowest number of houses sold typically occurs around December & January. The highest number of houses sold typically occurs around May. Price changes do not track the seasonal change in the number of houses sold.
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