- Pending sales remain historically high
- Inventory remains historically low
- Homes sell for below list for third straight month
Pending sales were strong again in Atherton in May, while inventory remained low. Sales were strong across market segments but there are more homes for sale in the higher price ranges. Price indicators fell in May, which was the third consecutive month in which sales closed for less than their asking price. However, with only seven closed sales, it’s difficult to draw any definitive conclusions about prices, especially here where there is such a wide range of home prices. The mix of high and low priced homes can dramatically alter averages.
With that being said, the median sales price was at its lowest point since July of last year. May’s median sales price was $3,702,500, which was $2.9 million below April’s median and $472,000 below that of a year ago. The price per square foot was also down. May’s $1,107 was $41 less than Aprils and $36 less than May 2014’s. The average sale in May was for 98.5% of the list price, little changed from 98.75% in April.
Seven sales closed in May, down from 11 in April and 14 a year ago. I would expect closed sales to rise with the recent increases in pending sales.
13 sales went to contract in May, up one from April and the most since May of last year – also 13. Inventory slipped two units from 21 at the end of April to 19 at the end of May. That was less than half the 40 homes available for sale a year ago. Inventory relative to pending sales dipped from 1.75 months at the end of April to 1.5 months at the end of May. Compare that to a year ago, when there was more than a four month supply.
On average, the seven sales that closed in May were on the market an average of 132 days, compared to 47 days for April’s sales and 72 days for May 2014’s sales.
Analysis by Price Range
There was only one home priced under $3 million available at the end of May, down from three at the end of April. Three sales went pending in this segment in May, up from none in April and the most since July 2014. May’s inventory of one home represented just a 0.33 month supply. 23% of Atherton’s pending sales were priced under $3 million, while only 5% of the city’s inventory was in this segment.
Three sales also went pending in the $3 million to $4,999,999 price range in May, down from five in April. Inventory fell by one unit to end May at four, a 1.3 month supply relative to sales. This price range accounted for 21% of inventory and 23% of pending sales.
Homes priced from $5 million to $9,999,999 saw inventory increase in May by one property, ending the month with four. Pending sales, on the other hand fell by one unit to four in May. Those changes resulted in a one month supply at the end of May, up from 0.6 months at the end of April. 21% of inventory and 31% of sales were in this segment.
Homes priced at or above $10 million made up more than half of Atherton’s inventory at the end of May but only 23% of sales. 10 homes were actively listed at the end of May, the same as at the end of April. Three sales went to contract in May, one more than in April. That decreased supply to 3.3 months at the end of May from 5.0 months at the end of April.