- Lower end homes driving sales
- Median price lower than year ago for 5th straight month
- Price per square foot back over $1,000
- Inventory stabilizes
- Sales drop
While there is uneasiness in the market for higher priced homes, that was not the case for homes priced below $2 million in Menlo Park in January. Those homes were in very high demand and most on the market saw a lot of activity. Buyers are realizing that rising interest rates will cut into the amount they can afford to pay for a house and they are on the lookout for the right home. Homes that are priced right and properly presented will do very well in the current market.
January’s median sales price was $2,270,000, a 43% increase over December’s $1,585,000. January was the fifth consecutive month that the median sales price was below that of a year earlier. It was also the first time in four months that the median was over $2 million, which is where it was from December 2014 through September of last year. The price per square foot got back over $1,000 ($1,068) after slipping to $962 in December. December was the first time in a year the square foot price was below $1,000. The average sale was for 101% of the list price in January, unchanged from December or a year ago.
16 sales closed in January, the fewest since January 2015’s 10. Closed sales have been declining steadily since July.
Pending sales also fell in January, matching the low for 2015 with 18. Five fewer sales went to contract in January than in December. However, January had seven more sales than a year ago. Inventory increased for the first time since October, climbing from 27 at the end of December to 30 at the end of January. That was on par with January 2015’s 31 sales. Those changes left a 1.7 month supply relative to pending sales at the end of January, up from 1.2 months at the end of December.
Time on the market increased again in January, from 30 days in December to 44. That was the longest homes were listed here since January 2012 (70 days).
Analysis by Price Range
The inventory of homes priced under $2 million at the end of January was half what it was at the end of November but it was a good sign that it actually increased by one unit from December. 13 of these homes were actively listed at the end of January. 14 sales have gone to contract in this segment in each of the previous five months but there were only 10 in January. 43% of Menlo Park’s inventory and 53% of its pending sales were priced below $2 million. Inventory relative to pending sales increased form 0.9 months at the end of December to 1.3 months at the end of January.
Homes priced from $2 million to $2,999,999 saw inventory drop from 13 in December to 10 in January. On the other hand, pending sales jumped from two in December to seven in January. That cut supply from 6.5 months at the end of December to 1.3 months at the end of January. This price range accounted for 33% of inventory and 39% of pending sales.
Seven homes priced at $3 million or more were actively listed at the end of January, five more than at the end of December. Those seven homes were 23% of Menlo Park’s total inventory. Pending sales fell sharply, from seven in December to only one in January. With the trends moving in opposite directions, the supply relative to pending sales jumped from about one week to seven months.