The real estate market in Los Alto showed strength in September with sales rebounding after being cut sharply in August. Inventory held steady, in spite of the increase in sales. Prices softened in September, with both the median sales price and price per square foot falling. The median sales price was 20% lower than it was a year ago. Homes that do sell still do so quickly (an average of 21 days in September). And they sold for 102% of the average list price.
The median sales price fell for the second straight month and for the third time in four months. September’s median sales price was $2.3 million, 3% or $80,000 lower than August’s. September’s price was also 20% or $580,000 lower than September 2015’s $2.88 million. The price per square foot increased from August but was lower than a year earlier. September’s price per square foot was $1,302 versus $1,167 in August and $1,365 in September 2015. On average, homes sold for 102% of the list price in September, up slightly from 106.6% in August but well off September 2015’s 110%.
INVENTORY AND SALES
Inventory has been quite steady the past few months at 52 homes in at the end of July, 54 at the end of August and 55 at the end of September. One year ago there were 55 homes for sale. After dropping by ten units in August, pending sales rebounded in September, increasing 11 units to 28. That was four more than in September 2015. The sharp increase in sales cut the supply relative to pending sales from 3.2 months at the end of August to 2.0 months at the end of September. We also had a two month supply a year ago.
Closed sales also bounced back from a sharp decline in August. 25 sales closed in September, nine more than in August and one more than a year ago.
DAYS ON MARKET
The average sale in September took 21 days, three more than in August but one less day than in September 2015.
Inventory and Sales by Price Range
Under $2 million
There were not many homes priced under $2 million for sale at the end of September. Only five of these homes were actively listed, down three form August. Those five homes were 9% of Los Altos total inventory. Pending sales doubled in this segment, from three in August to six in September, accounting for 21% of all sales. Less than a month’s supply (0.8 months) was available at the end of September, down sharply from 2.7 months at the end of August.
$2 Million to $2,999,999
Homes priced from $2 million to $2,999,999 accounted for 42% of inventory at the end of September and 61% of pending sales during the month. 17 sales went to contract in September, five more than in August. Inventory fell from 29 at the end of August to 23 at the end of September. 1.3 months of inventory were on the market in this price range at the end of September, down from 2.4 months at the end of August.
$3 Million and Above
27 homes priced at or above $3 million were actively listed at the end of September, ten more than at the end of August. Five sales went pending in this segment during September, two more than in August. Supply was cut from 8.5 months at the end of August to 5.4 months at the end of September. This category made up 49% of inventory but only 18% of sales.
Check out these other Real Estate Market Conditions Reports for September 2016: