- Sales very low
- Inventory still falling
- Most inventory in the high end
- Uncertainty in the market continues
Uncertainty continues to keep the Atherton real estate market in a bit of a holding pattern. In general, lower priced homes are in high demand while potential buyers of high-end homes appear to be waiting and watching what happens with the economy. The result is less demand for homes here, where more than 80% of current inventory is priced over $5 million and more than half over $10 million. Is there a price “reset” pending in the luxury market? Some think so. We’ll keep an eye on it as the year unfolds.
Sales were very low in January, with only two pending sales and two closed sales. It is generally a slow time for sales but it feels even slower. Inventory fell for the third consecutive month. For the second consecutive month there were no homes on the market priced under $3 million.
With only two closed sales, making any pricing observations is difficult. One thing that can be said is that those two homes sold quickly; 10 days and 16 days, respectively. The homes were sold for $4.7 million and $3.9 million, which is towards the lower end here. The price per square foot was $1,830 for these two properties, which is very high. The $4.7 million home sold for 117% of the list price, while the other closed for 103% of list.
Two sales closed in January. The last time there were that few sales was January 2012.
Inventory fell for the third straight month. 22 properties were actively listed at the end of January, two less than at the end of December but nine more than were for sale a year ago. Pending sales, which were extremely low the past two months, fell again in January. Only two sales went pending in January, compared to three in December and three a year ago. 11 months of inventory relative to pending sales was available at the end of January, up from eight months at the end of December and four months at the end of January 2015.
The two properties that sold in January did so in an average of only 13 days, the shortest average in at least five years.
Analysis by Price Range
There was no inventory in the under $3 million segment at the end of January. There were no pending sales during January either. Not much change from December when there was no inventory and one pending sale.
Four homes were actively listed in the $3 million to $4,999,999 price range at the end of January, one less than at the end of December. Those four homes were 18% of Atherton’s total inventory. Two sales went to contract during January. That was 100% of pending sales here in January and two more than went pending in December.
With five properties for sale at the end of January, the $5 million to $9,999,999 segment accounted for 23% of inventory ibn Atherton. January’s inventory was unchanged from December. No sales went pending in this price range during January.
The $10 million and up segment accounted for the largest portion of inventory. 13 properties were actively listed in this category, making up 59% of all inventory. No sales went to contract in January, compared to two during December.