Atherton Market Conditions July 2014

• Average sales price below list for first time since October
• Inventory falls for third straight month
• Very little inventory of homes priced under $5 million
• Sales flat

The Atherton real estate market softened a bit in July, with single family detached home selling below the list price (on average) and inventory continuing to decline. The median sales price and the average price per square foot increased sharply in July but the sales numbers are small, so these statistics can be very volatile.

July’s median sales price was $3.5 million, $49% of $1.15 million higher than in June. That was also $27,000 higher than a year ago. Closed sales in July were for 99% of their average list price, down from 104% in June. That ended a streak of eight straight months with an average sales price to list price ratio over 100%. The average price per square foot in July was $2,512, the most here in at least three years. The average price per square foot in June was $970 and one year ago was $835.

Nine sales closed in July, unchanged from June. Ten sales closed a year ago. ON average, there have been nine closed sales a month for the past year, with 14 being the most and five the least.

Pending sales were also flat, with eight in both June and July. There were also eight during July 2013. Inventory decreased three units, form 26 at the end of June to 23 at the end of July, a 12% loss. 45 homes were actively listed a year ago, 49% more than the current inventory. At the end of July 2.8 months of inventory relative to pending sales were on the market, down from 3.3 months at the end of June and 5.6 months at the end of July 2013.

Homes were listed for an average of 30 days before going to contract in June, down from 51 days in July and 66 days a year ago.

Analysis by Price Range

Only one home priced below $3 million was actively listed at the end of July, down from two in June and three in May. There was also one home available in this segment a year ago. Two homes went into contract in July, one less than in June, as well as in July 2013. That meant that two weeks of inventory were on the market at the end of July, down from 0.7 months at the end of June. This segment accounted for only 4% of Atherton’s inventory but 25% of its pending sales.

After jumping to six active listings at the end of June, homes priced from $3 million to $4,999,999 saw inventory drop back to two at the end of July, the same as in May. 10 homes were available a year ago but the average since then was three. Five sales went pending in July, the most since May of last year. The average number of pending sales for the past twelve months was two. Inventory was cut from six months at the end of June to less than two weeks at the end of July. 63% of Atherton’s inventory was in this price range at the end of July but only 9% of its inventory.

Only one sales of a home priced from $5 million to $9,999,999 went pending during July, two less than in June and one less than a year ago. Nine homes were actively listed in this price range at the end of July, down one form June but less than half the 22 homes on the market at the end of July 2013. Inventory relative to pending sales increased form 3.3 months at the end of June to 9.0 months at the end of July. This price range made up 39% of Atherton’s inventory at the end of July and 14% of the sales that went pending during the month.

Eleven homes priced at $10 million-plus were available at the end of July, three more than at the end of June but one less than a year ago. No sales went into contract in this segment in July, compared to one in June and none in July 2013. 48% of Atherton’s inventoyr was priced at $10million or more.