Atherton Market Conditions June 2014

  • Median sales price down
  • Sales fall
  • Inventory remains low
  • Days on market doubles

After several months of very strong results, the Atherton real estate market showed some weakness in June.  Both closed and pending sales declined, as did the median sales price.  Homes were also on the market longer.  It was not all gloom and doom though as the average sales price to list price ratio increased and inventory fell by only one unit.

 

The median sales price in June was $2,350,000, which was 44% or $1,825,002 lower than May’s $4,175,002.  June’s median price was also 47$ or $2,050,000 below June 2013’s $4.4 million.  The median sales price here can be volatile due to the low number of sales and the wide range of home prices.  June’s sales closed for an average of 103.4% of the list price, up from 102.8% in May.  June marked eight consecutive months where homes sold for more than 100% of their list price, on average.  The average price per square foot fell 15% ($173) in June, from $1,143 in May to $970.  June’s price per square foot was also 15% ($165) lower than a year ago ($1,135).  However, June 2013’s average price per square foot was abnormally high.

 

Atherton-Market Conditions-JUNE-01

 

Nine sales closed in June, five fewer than May’s 14.  It was the first time since February that there were less than 10 closed sales.  June’s nine closed sales matched the number from a year ago.

 

Atherton-Market Conditions-JUNE-02

 

Eight sales went into contract in June, down two from May and equal to June 2013.  Inventory fell by one unit in June, from 27 in May to 26.  Inventory remains very low.  By comparison, 49 properties were actively listed at the end of June 2013, 23 more than at the end of this June.   Due to the drop in sales, inventory relative to pending sales increased from 2.7 months at the end of May to 3.25 months at the end of June.

 

Atherton-Market Conditions-JUNE-03

 

June’s closed sales were listed for 51 days, on average, more than double May’s 24 days.  The number of days on the market for April and May were abnormally low and June may be just a return to a more normal state.  A year ago, homes were listed for an average of 72 days and the average for the past twelve months was 66 days.

 

Atherton-Market Conditions-JUNE-04

 

Analysis by Price Range

 

Both the inventory and number of sales that went into contract of homes priced under $3 million fell by one unit in June.  Two homes were actively listed at the end of June and three sales went pending during the month.  Inventory relative to pending sales was little changed at about 0.7 months.  38% of Atherton’s pending sales in June were priced below $3 million, while only 8% of its inventory was in this segment.

 

Atherton-Market Conditions-JUNE-05

 

More homes were actively listed in the $3 million to $4,999,999 price range at the end of June than any month since October of last year.  Six homes were available in this segment, up from two at the end of May.  Pending sales, on the other hand, fell by one unit, from two in May to only one in June.  The increase in inventory meant there was six months of inventory on the market at the end of June.  23% of Atherton’s inventory at the end of June and 13% of its pending sales during the month were in this price range.

 

Atherton-Market Conditions-JUNE-06

 

The inventory of homes in the $5 million to $9,999,999 price range fell by five units in June to end the month with 10.  Three sales went pending during June, one more than in May.  Inventory relative to pending sales was cut by more than half, from 7.5 months at the end of May to 3.3 months at the end of June.  This price range accounted for 39% of Atherton’s inventory at the end of May and 38% of the sales that went pending during the month.

 

Atherton-Market Conditions-JUNE-07

 

Eight homes price at $10 million-plus were activly listed at the end of June, one more than at the end of May.  Only one sales went pending during June, one less than in May.  31% of Atherton’s inventory was priced at $10 million or more, as were 13% of its pending sales.

 

Atherton-Market Conditions-JUNE-08