With only five closed sales in each of the past two months, it is difficult to draw too many conclusions about the real estate market in Atherton based on the data. What does seem clear, not just from the data but from watching and working in the market daily, is that we are experiencing a return to a more “normal” market. Aggressive overbidding, surging prices and multiple offers on just about every home are no longer the norm. The current market is much more balanced. It I still healthy, however, and opportunities exist for both buyers and sellers.
Homes priced under $3 million are seeing much more activity than the homes priced over $10 million, where inventory remains high. Sellers, especially at the high end, often must resort to cutting their price in order to sell. As a result, homes have sold for less than their asking price (on average) in each of the past four months. 2012 was the last time that happened.
Median Sales Price
July’s average sale was for 96% of the list price, down from 98% in June and 104% a year ago. The median sales price was $3.2 million, down from $5.6 million in June. With only five sales in both June and July, and with such a wide variety of homes available in Atherton, pricing statistics can be affected greatly by the mix of properties sold in a given month. The price per square foot was $1,572 in July, up from $1,435 in June but lower than July 2015’s $1,705 (July 2015’s price per square foot was abnormally high and was, at that time, the highest ever recorded here – it is still the second highest ever).
Five sales closed in July, the same as in June and one more than a year ago.
For Sale vs. Pending
Inventory remained unchanged from June at 45 units. That was 18 more homes than were actively listed a year ago. Six sales went to contract in July, one more than in June and equal to sales a year earlier. Supply relative to pending sales fell from 9.0 months at the end of June to 7.5 months at the end of July.
Days to Sell
The low number of sales also affects the volatility of the average length of time on the market. July’s sales were listed for an average of 27 days, compared to 98 days in June and 19 days in July 2015.
Analysis by Price Range
Under $3 million
Four homes priced under $3 million were actively listed at the end of July, one less than at the end of June. One sale went to contract during July, where none did in June. July’s supply stood at four months. 9% of inventory and 17% of sales were in this segment.
$3 million to $4.9 million
In the $3 million to $4,999,999 segment, inventory was cut in half, from eight at the end of June to four at the end of July. Those four homes were 9% of Atherton’s total inventory. Pending sales ticked up one unit from June to two in July, representing a third of all sales. A 2.0 month supply was on the market in this price range at the end of July, down from 8.0 months at the end of June.
$5 million to $9.9 million
36% of Atherton’s inventory was priced from $5 million to $9,999,999 at the end of July, while only 17% of pending sales were in this segment. Inventory increased from 12 at the end of June to 16 at the end of July. One sale went pending during July, compared to three in June. A 16 month supply was available at the end of July, up from 4 months at the end of June.
$10 million or over
Nearly half (47%) of all inventory was priced at or above $10 million at the end of July. 21 properties were actively listed in this segment at the end of July, one more than at the end of June. Two sales went to contract in July, one more than in June. July’s pending sales were a third of the city’s total. Supply was cut from 20 months to 10.
Check out these other Real Estate Market Conditions Reports for July 2016: