Peninsula Real Estate Market UpdateWe see 2015 with a divided landscape: an improved US economy and weakness just about everywhere else. The Dow rose for the sixth straight year in a row, gaining 7.5%, the S&P 500 rose 11.4%, the dollar is poised to keep rising, and it is anticipated that the Fed will raise interest rates sometime soon. California's overall economic growth is outpacing the nation, and the Bay Area's job market is especially impressive. This booming labor market has driven median home prices in the area up beyond their pre-recession peak.Home prices jumped dramatically in the first quarter of 2015. The median sales price of homes in San Mateo County rose 9% to $955,000. Prices in Santa Clara County rose 4% to $780,000, weighted down mostly by the City of San Jose, while Palo Alto, Mountain View, and Sunnyvale rose 10%% or more. The inventory of homes for sale is very tight, barely a month's supply. As a result, this has constrained the number of homes for sale, and the number of home sales is the lowest in years.If you are thinking about moving this year, it will be vital to work closely with an experienced agent to navigate this challenging market. We will be happy to help you.