Cupertino Market Conditions February 2014
- Pending sales increase, especially in the $1 million to $2 million range
- Prices continue to increase from prior year
- Inventory still low
The biggest change in the Cupertino real estate market in February was the fact that while closed sales fell slightly, the number of sales that went pending increased 62% from January, led by a 72% jump for homes priced from $1 million to $2 million. The median sales price was up from both January and a year ago, extending to 18 the number of months the median sales price was higher than the previous year’s.
The median sales price of a single family detached home in Cupertino increased to $1,464,000 in February, a 3% ($39,000) increase from $1,425,000 in January and 5% ($71,125) increase from $1,392,875 a year ago. The average price per square foot fell $32 or 4% in February to $820. That was, however, 11% or $83 higher than a year ago ($737). The average sale in February was for 110% of the list price, up from 108% in January and 106% a year ago.
16 sales closed in February, one less than in January. As can be seen in the chart below, closed sales have declined pretty steadily since peaking at 39 in May. With the increase in pending sales (see below), I would expect closed sales to increase in the coming months.
21 sales went pending during February, eight more (62%) than went pending in January and the same as a year ago. Total inventory increased from 13 at the end of January to 15 at the end of February. The sharp increase in pending sales dropped the number of months of inventory relative to sales that went pending during the month from 1.0 month at the end of January to 0.7 months at the end of February.
After spiking to its highest level in over a year in January (37), the number of days homes were listed fell to a more normal level in February (21). That also matched the number from February 2013.
Analysis by Price Range
13% of Cupertino’s inventory at the end of February and 5% of the sales that went pending during the month were priced below $1 million. Only one sale went pending in this segment in February, the fewest since January 2013. Two homes were actively listed in this segment at the end of February, unchanged from January.
Homes priced from $1 million to $1.99 million drove the market here in February. Only 33% of Cupertino’s inventory was in this price range but 71% of the sales that went pending in January were priced form $1 million to $1.99 million. 15 sales went into contract, up seven from eight in January. Inventory was unchanged at five. 0.3 months of inventory relative to sales that went pending were available at the end of February, down from 0.6 months at the end of February.
The number of $2 million-plus sales that went pending jumped to five in February from one in January. That was the most in this segment in a year. About half of Cupertino’s inventory at the end of February was priced at $2 million or more, while 24% of the sales that went into contract were in this segment. Eight homes were actively listed at the end of February, up from six at the end of January.
