Palo Alto real estate

Palo Alto Market Conditions April 2014

  • Closed sales doubled
  • Inventory way up, propelled by lower end
  • Sellers get 116% of list, on average
  • Pending sales strong across market segments

 
Last month we saw pending sales nearly double, which led to April’s closed sales doubling.  Pending sales were up modestly in April but nearly every price segment increased.  Sellers came strong in April, driving inventory up 72%.  Homes priced under %1 million drove the increase, with homes priced under $2 million posting the biggest gains

April’s closed sales were for 116% of the list price, on average, about the same as in March but up from 112% a year ago.  The median sales price fell 8% in April, from $2,480,000 in March to $2,272,500 in April, a loss of $207,500.  April’s median sales price was, however, still 3% ($72,500) higher than April 2013’s $2,200,000.  The average price per square foot increased $81, from $1.312 in March to $1,393 in April.  April’s price per square foot was higher than a year ago by 15% or $180.

46 sales closed in April; double March’s 23 and equal to April 2013.  In fact, April’s closed sales were the highest since April 2013.

43 sales went pending in April, three more than in March but five less than a year ago.  Inventory jumped from 25 at the end of March to 43 at the end of April, an increase of 72%.  April’s inventory was 20 units higher than a year ago.  Inventory relative to pending sales increased from 0.6 months at the end of March to 1.0 month at the end of April.

Days on market remained low at 12 for April’s closed sales, compared to 10 days in March and 17 a year earlier.  Homes have been on the market for less than 15 days in three of the past four months.

Analysis by Price Range

Homes priced under $2 million accounted for 20% of Palo Alto’s inventory at the end of April and 51% of the sales that went into contract during the month.  13 homes were actively listed in this segment at the end of April, eight more than March’s five.  22 sales of homes priced under $2 million went pending in April, two more than in march but three less than a year ago.  Inventory relative to pending sales increased from one week at the end of March to more than two weeks at the end of April.

The inventory of homes priced from $2 million to $2,999,999 increased by five units to 11 at the end of April.  14 sales went into contract in this price range during April, one more than in March.  0.8 months of inventory were available at the end of April, up from 0.5 months at the end of March.  This segment accounted for 33% of Paolo Alto’s pending sales in April and 26% of its inventory.

The inventory of homes priced from $3 million to $4,999,999 also jumped in April.  12 properties were actively listed at the end of April, a 50% increase from eight at the end of March.    Four sales went into contract in this price range in April, up from three in March.  Inventory relative to pending sales increased from 2.7 months at the end of March to 3.0 months at the end of April.  27% of Palo Alto’s inventory was in this price range at the end of April.  But only 10% of the sales that went pending in April were priced from $2 million to $3 million.

Four homes priced from $5 million to $6,999,999 were on the market at the end of April, two more than at the end of March.  Only one sale went pending in this price range in April, down from three in March.  That left three months of inventory relative to pending sales.  This portion of the market accounted for 9% of Palo Alto’s inventory and 2% of pending sales for April.

The upper end of the market (homes priced over $7 million) made up 5% of the sales that went pending in April and 7% of Palo Alto’s inventory at the end of the month.  Three homes were on the market in this price range at the end of April, down from four at the end of March.  Two sales went into contract in April, one more than in March.