Palo Alto continued to have one of the strongest real estate markets in the area in September. More sales went to contract during September than in all but one month (May 2016) during the past year and a half. Homes priced under $2 million were in particularly strong demand, with less than a month’s supply. Homes, on average, continued to sell for more than their asking price, although the median sales price was below that of a year earlier for the second straight month.
After falling for six straight months, the ratio of sales price to list price has now increased in each of the past two months. The average sale in September was for 103% of the list price, up from 102% in August but well below September 2016’s 111%. The median sales price in September was $2,675,611, 12% higher than August’s $2,398,000 but 20% lower than September 2015’s $3,337,500. It should be noted that September 2015’s median price was the highest ever recorded here. The price per square foot dipped from $1,467 in August to $1,431 in September, which was 12% below the price of a year ago.
INVENTORY AND SALES
40 sales went to contract in September, the second highest monthly total in 18 months. There were 35 pending sales in August and 18 a year ago. Inventory increased from 74 at the end of August to 89 at the end of September, a 20% jump. 74 properties were available at the end of September 2015. With both sales and inventory increasing, the ratio between the two did not change much. A 2.2 month supply was on the market at the end of September, up from 2.1 months at the end of August but down from 4.4 months a year ago. Closed sales also increased in September, from 33 in August to 38.
DAYS ON MARKET
The average closed sale in September to 24 days, up a little from 21 days in August and 22 days in September 2015.
Inventory and Pending Sales by Price Range
Under $2 Million
The market for homes priced under $2 million remains quite hot here. 12 sales went to contract during September and while that was two less than in August, it was the second most in a year and a half. Inventory was cut from 16 at the end of August to nine at the end of September. That left a supply of about three weeks at the end of September, down from about five weeks at the end of August. While only 10% of Palo Alto’s inventory was in this segment, 30% of pending sales were.
$2 Million to $2,999,999
Pending sales of homes in the $2 million to $2,999,999 price range increased by three to 17 in September, accounting for 43% of the city’s total. Inventory jumped from 22 at the end of August to 38 at the end of September. 43% of sales were in this price range. The supply increased from 1.6 months at the end of August to 2.2 months at the end of September.
$3 Million to $4,999,999
27% of inventory and 20% of pending sales were homes in in the $3 million to $4,999,999 price range. 24 of these homes were actively listed at the end of September, two more than at the end of August. Eight sales went pending during September, three more than in August. A 3.0 month supply was on the market at the end of September, down from 4.4 months at the end of August.
$5 Million and Above
Three sales of homes priced at or above $5 million went pending during September, one more than in August. Inventory increased by four units to 18 at the end of September. That represented a six month supply of these homes. 20% of Palo Altos’ inventory was in this segment, while only 7.5% of pending sales were.
Check out these other Real Estate Market Conditions Reports for September 2016: