- Inventory falls for first time since January
- Sales flat
- Prices soften
- High end inventory climbs
We saw the same dynamic in May as we saw in April; which is that homes priced below where they “should be” got multiple offers and sold quickly, while others stayed on the market longer. Inventory fell for homes priced under $5 million but increased for homes priced over that. Pending sales were flat to April and closed sales actually fell a little. Prices softened also, with the median sales price declining for the second straight month and homes selling, on average, for less than their list price.
The median sales price in May was $3,728,000, which was just $9,550 below April’s median but a healthy 27% above a year ago. With the low number of closed sales here and the wide range of housing options, pricing statistics can be volatile from month to month. The average home sold for 98% of the offer price in May, down from 102% in April and 103% in May 2015.The price per square foot is the one price indicator that increased in May, from $1,003 in April to $1,083 in May. That was still 27% lower than a year ago.
After spiking to their highest level in two years, closed sales fell from 16 in April to 13 in May. Eight sales closed in May 2015.
Inventory, which had been climbing for three months, fell by ten units in May to 43. That was, however, eight more homes than were for sale a year earlier. Pending sales matched April’s three year high of 16, which was double the number from a year ago. A 2.7 month supply relative to pending sales was available at the end of May, down from 3.3 months at the end of April.
The average length of time that May’s sales were on the market was 109 days, compared to 32 days in April and 55 days a year ago. However, two properties that were on the market for nearly one year and over two years, respectively, sold, driving the average higher. Without those two properties, the average was 33 days, about the same as April.
Analysis by Price Range
The inventory of homes priced under $3.5 million, fell form a 2.5 year high in April of 15 to nine in May. Pending sales were unchanged at five. A 1.8 month supply was on the market at the end of May, down from 3.0 months at the end of April. 21% of Los Altos Hills’ inventory at the end of May and 31% of its pending sales during the month were priced below $3.5 million.
13 homes priced from $3.5 million to $4,999,999were actively listed at the end of May, down from 16 at the end of April. Pending sales slipped by three unites to seven during May. Inventory relative to sales was little changed at about 1.9 months. This price range accounted for 30% of inventory and 44% of pending sales.
The $5 million-plus segment is the only one that added inventory in May, increasing by two homes to end the month with 21. That was 49% of all inventory. This segment was also the only one to see increased pending sales, with four in May, a quarter of all pending sales. Supply relative to sales was cut from 19 months at the end of April to 5ive months at the end of May.