- Sales increase
- Inventory declines
- Median sales price down 14%
- Sales price to list price ratio increases to over 113%
Closed sales increased 45% from September, while pending sales were up 15%. Inventory was down in October, with the biggest declines in lower priced homes. The median sales price fell but other price indicators increased. Properties were listed longer than at any time since February 2013.
The median sales price in October fell $390,000 or 13%, from $2,900,000 in September to $2,510,000 in October. That was still high enough to be 9% higher ($210,000) than October 2013’s $2,300,000. The average sales price per square foot fell for the first time in four months, but only slightly, from $1,401 in September to $1,379 in October, a loss of $22 or 1.6%. October’s price per square foot was 15% or $181 higher October 2013’s $1,198. The average closed sale in October was for 113.4% of the list price, compared to 112.a% in September and 113.3% a year ago.
Closed sales had been trending downward the past few months but rebounded in October with 42, compared to 29 in September and 44 a year earlier.
38 sales went to contract during October, five more (15%) than September’s 33 but four less than a year ago. Inventory fell by 10 units, from 39 at the end of September to 29 at the end of October. Inventory levels have been quite volatile the past several months. One year ago, 30 homes were actively listed. Inventory relative to pending sales dropped from 1.2 months at the end of September to 0.8 months at the end of October.
Homes were listed for an average of 30 days in October, up from 15 days in September. This statistic has been somewhat volatile lately. However, the trend appears to be up from the middle of the year. One year ago, homes were on the market for an average of 20 days.
Analysis by Price Range
Pending sales of homes priced under $2 million were unchanged from September at 17, which was four less than during October 2013. Inventory was cut in half, from 12 at the end of September to six at the end of October. 12 homes were on the market a year ago. The supply of homes was cut from 0.7 months at the end of September to 0.35 months at the end of October. This market segment accounted for the largest portion of Palo Alto’s pending sales (45%). But only 20% of the city’s inventory was priced below $2 million.
21% of Palo Alto’s inventory and 32% of its pending sales were priced from $2 million to $2,999,999. Inventory was cut by three, from 10 at the end of September to seven at the end of October. Pending sales increased by two, from 10 in September to 12 in October. There was a 0.6 month supply of inventory at the end of October, down from 1.0 month at the end of September.
In the $3 million to $4,999,999 market segment, inventory declined from 10 homes at the end of September to eight at the end of October. Six sales went pending in October, one more than in September. That cut the number of months’ supply from 2.0 months at the end of September to 1.3 months at the end of October. 28% of inventory and 16% of pending sales were in this price range.
Three sales of homes priced from $5 million to $6,999,999 went to contact during October, two more than in September. Inventory was unchanged at five. That cut inventory relative to pending sales from 5.0 months at the end of September to 1.7 months at the end of October. This price range made up 17% of Palo Alto’s inventory and 8% of its pending sales.
For the second consecutive month, and for four out of the past six, no sales of homes priced at or above $7 million went to contract. Inventory increased by one to three at the end of October, accounting for 10% of the city’s total.