House vs. Townhouse
Los Altos townhouse prices follow the same trajectory as Los Altos house prices but have more variability.
House vs. Condo
Los Altos condo prices used to follow Los Altos house prices but diverged at the beginning of the Covid-19 pandemic.
Factors That Could Impact Future Prices
High construction costs and high interest rates make it difficult for a builder to foresee a profit on a new Condo project. A builder also needs economic stability to plan a profitable construction project.
There have been reports of very few new permit applications in several cities in Silicon Valley, including the largest, San Jose. The difficulty builders are having creating a plan that shows a likely profit is cited as the cause of the low number of new permits.
State mandates to build high-density housing and low-income housing add complexity and uncertainty to projects. Some of these mandates are being challenged. Competing housing projects are seeking strong government assistance through grants and relaxed requirements. It would be difficult for a builder to be competitive against a builder who received government assistance.
The numerous challenges builders face are slowing the construction of new housing. Prices for houses, townhouses, and condos seem to have no foreseeable path but up.
You can learn more about Los Altos real estate.