The Los Altos real estate market is kind of interesting right now. The pace is much more normal, with buyers having more of a say and no more aggressive overbidding. There is no question that the activity level has dropped as the market continues to normalize and we enter the fall. But there is still demand, evidenced by the fact that the homes that sold in August did so in an average of only 18 days for just over 100% of the asking price. On the other hand, sales have been cut by more than half in the past three months. Inventory, which had been trending downward, ticked up in August.
Median Sales Price
The median sales price in August was $2,380,000, which was 15% below the price in July, as well as a year ago. With fewer sales, medians and averages can get more volatile, so no need to panic. It is interesting though that the median sales price was below the level of a year earlier for the past three months. We haven’t seen that in many years. Other price indicators were more positive. The price per square foot was little change from July at $1,167. That was about 2% higher than a year ago. The sales price to list price ratio was 102% in August, up from 101% in July but well off August 2015’s 107%.
Closed sales have been falling rapidly, from 40 in June to 28 in July and only 16 in August. 28 sales closed in August 2015.
For Sale vs. Pending
After falling for the past two months, inventory crept up by four units in August, to end the month at 54. 17 more homes were actively listed at the end of August than a year earlier. Pending sales fell from 28 in July to 21 in August, which was also seven less than a year ago. A 2.6 month supply was available at the end of August, compared to 1.8 months at the end of July and 1.3 in August 2015.
Days to Sell
While the market has slowed recently, some homes are still selling quickly. On average, August’s sales closed in only 18 days, two less than July’s and three less days than August 2015’s.
Analysis by Price Range
Under $2 million
Homes priced under $2 million remain very much in demand. Only three of these homes were actively listed at the end of August, while six sales went pending in this segment. That compares to four homes for sales at the end of July and two pending sales in July. The supply was cut from 2.0 months at the end of July to about two weeks at the end of August. 29% of pending sales in Los Alto were priced under $2 million, while only 6% of inventory was in this category.
$2 million to $2.99 million
The $2 million to $3 million price range continues to account for the bulk of activity here (56% of inventory and 62% of pending sales). 30 properties were actively listed at the end of August, three more than at the end of July. Pending sales were cut by five to 13 in August. Supply increased from 1.5 months at the end of July to 2.3 months at the end of August.
$3 million or over
The $3 million-plus segment accounted for a much greater portion of inventory in August (39%) than pending sales (10%). Inventory increased by two homes to 21 at the end of August, while pending sales fell sharply, from eight in July to two in August. That meant a 10.5 months’ supply of these homes at the end of August, compared to 2.4 months at the end of July.
Check out these other Real Estate Market Conditions Reports for August 2016: