The Palo Alto real estate market, found in the midst of the San Francisco Bay Area in Santa Clara County, has shown continued strength in the month of June. The median price of Palo Alto homes for sale has appreciated substantially year-over-year, and the number of distressed mortgages has declined. According to an August 5, 2010 article from the Milpitas Post, “The average home in Santa Clara County sold for 3.68 percent more in June than in May, and 12.51 percent more than June last year, according to MLSListings Inc. The June average sales price was $695,208 for single-family homes, townhouses and condos. "The strong demand we've seen since January continues to push recovery in our local market," said Karl Lee, president of the Santa Clara County Association of Realtors. "Santa Clara County has posted some of the best market numbers statewide and nationwide."Buyers and sellers closed sales on 1,431 homes in June, a 14.31 percent decrease from May and a 7.38 percent decrease from June last year…In another sign of a rebounding market, more homes are on the market. 6,455 homes were for sale in June, a 7.49 percent increase from May and a 15.60 percent increase from June last year. "We are finally seeing a healthier inventory level, particularly as more traditional, non-distress sellers work with knowledgeable Realtors to take advantage of this seller's market," Lee said.”
Mortgage defaults in Silicon Valley followed the suit of Palo Alto and Santa Clara County, according to an August 2, 2010 report from the Mercury News. The piece by Rose Meily noted that “California mortgage defaults hit a three-year low in the second quarter of this year, but foreclosures appeared to be on the rise statewide, according to a real estate information service. Santa Clara County didn't follow the statewide trend and, in fact, experienced the largest drop in mortgage defaults and foreclosures this period in the nine-county Bay Area…Santa Clara County and the Bay Area as a whole appear to have bucked the statewide trend this period. In the Bay Area, notices of default were down 38.8 percent. Santa Clara County had the largest drop in defaults, with 2,313 NODs filed in the second quarter, down 43.60 percent from the same period a year ago.”