Cupertino Market Update January 2014
The inventory of single family detached homes fell to its lowest level in at least 11 years at the end of 2013, with only nine properties actively listed. Sales have followed inventory downwards. Prices have shown the opposite trend, with the median sales price ending higher for each of the past 17 months than it was the year before. Some highlights of the current market include:
– Inventory at eleven year low
– Median sales prices are trending up
– Price per square foot at possible record high of $852 in January 2014
– 2013 sales prices were 107% of list price, on average
– Homes on the market for only 18 days on average in 2013 (30 days in 2012)
As the chart below shows, both inventory and sales have fallen steadily since July. Inventory hit bottom in January with only nine properties on the market, before bouncing back a little in January with 13. There was still less than a third the available inventory at the end of January as at the end of July. 13 sales went pending in January, the fewest since January 2013 and, like inventory less than a third of July 2013’s sales. Interestingly, the number of months of inventory has not changed much over the past two years. On average, there was 1.75 months of inventory during 2013, compared to 1.8 months in 2012.
Sales price have been headed up for the past few years, as the chart below shows. The median sales price for January 2014 was $1,425,000, which was $80,000 higher than December’s and $245,000 higher than January 2013’s $1,180,000. The median sales price has been higher than the level for the previous year for the past 17 months, dating back to September 2012.
Sales prices here have been well over the list price for the past two years. We have to go back to March 2012 to find a month where the sales price was below the list price. The average sale here in 2013 was for 107% of the list price, compared to 103% for 2012. This ratio was 109% for December and 108% for January. The average price per square foot has also increased steadily over the past few years and was $852 for January, the highest level in at least 10 years, and possible ever. The chart below shows the average price per square foot here for the past three years. This ratio has been higher than the year before for the past 23 months.
The length of time homes stay on the market declined in 2013 as well, from an average of 30 days in 2012 to 18 in 2013. Sales closed in January were on the market for an average of 37 days.
Price Range Analysis
Homes priced below $1 million accounted for 15% of Cupertino’s inventory at the end of January and 31% of sales that went pending during the month. 2 homes were actively listed in this segment at the end of January, one more than at the end of December and two more than a year ago. Four sales went pending in January, the same number as December and three more than a year ago.
15% of available inventory were priced from $1 million to $1,999,999 at the end of January, while 62% of the homes that went into contract were in this price range. At the end of January, five homes were actively listed in this segment, compared to three at the end of December and eight at the end of January 2013. Eight sales went pending in January, down from 11 in both December and January 2013.
With six homes on the market priced over at $2 million or more at the end of January, 46% of Cupertino’s available inventory was in this segment. By comparison, five properties were actively listed at the end of December and seven a year ago. Only one sale went pending in this price range during January, accounting for 7% of Cupertino’s total. There was also only one sale in December and none a year ago.