Atherton Market Conditions April 2014

  • Sales dipped, especially high end
  • Inventory increased, again in the high end
  • Homes sold for 104% of list on average
  • Day on market lowest level in years

 
After seeing pending sales of single family detached homes spike to their highest level in years, it was not surprising that they fell back a bit in April.  Inventory, which is still low, increased in April.  The changes in both sales and inventory were led by homes priced over $5 million.  The median sales price fell but the sales price to list price ratio remained over 100% for the sixth consecutive month.

The median sales price in April was $3,275,000, well off March’s $5,237,500.  The median sales price can be very volatile in Atherton due to the wide range of home prices.  It all depends on the mix of sales that close in a given month.  March’s median sales price was the highest we have seen in over three years, due to a higher proportion of high priced home sales.  The average sale in April was for 103.5% of the list price, up from 100% in March and 101% a year ago.  The average price per square foot in April was $992, the first time since November it has been below $1,000.  Last month, the price per square foot was $1,196 and a year ago it was $1,105.

11 sales closed in April, one less than in March, as well as a year ago.  Over the past twelve months, closed sales averaged nine per month.

11 sales went into contract in April, down five from 16 in March and two from 13 a year earlier.  March’s number of pending sales was abnormally high, however.  Eight homes were added to inventory in April, bringing the number of actively listed homes to 28, a 40% increase from March’s 20.  That was, however, 20 units below the level of a year ago.  The increase in inventory and drop in sales doubled the level of inventory relative to pending sales from 2.25 months at the end of March to 2.55 months at the end of April.  A year ago, 4.4 months of inventory was on the market.

April’s closed sales were on the market for an average of only 17 days, the lowest level in over three years.  March’s sales were listed for an average of 87 days and a year ago, homes were on the market for an average of 49 days.

Analysis by Price Range

The inventory of homes priced under $3 million increased by one to three at the end of April.  Four sales went into contract in this segment during April, one less than in March.  Inventory relative to pending sales increased from less than two weeks at the end of March to three weeks at the end of April.  36% of Atherton’s inventory at the end of April and 11% of the sales that went pending during the month were priced below $3 million.

At the end of April, there were no homes available in the $3 million to $4,999,999 price range.  Four sales went into contract in this segment, one less than during March.  This price range accounted for 36% of the sales that went pending in Atherton during April.

The available inventory of homes priced from $5 million to $9,999,999 jumped, from eight at the end of March to 15 at the end of April.  That was 54% of Atherton’s inventory at the end of April.  Two sales went into contract during April, down from four in March.  Inventory relative to pending sales went from 2.0 months at the end of March to 7.5 months at the end of April.  18% of the sales that went pending here in April were in this price range.

The $10 million-plus segment had one sale go pending during April, down from four in March.  March’s number was abnromally high, however.  10 homes were actively listed in this price range at the end of April, two more than at the end of March.  10.0 days of inventory relatvie to pending sales were available at the end of April, compared to 2.0 days at the end of March.  This segmetn accounted for 36% of Atherton’s inventoyr at the end of April and 10% of its sales that went pending.