Los Altos Hills real estate

Los Altos Hills Market Conditions April 2015

  • Pending sale surge
  • Inventory flat
  • Prices increase
  • 17 days on market

As I suspected, the lull in the Los Alto real estate market in March was not the beginning of a trend and the market jumped into high gear in April. More sales went to contract in Los Alto Hills in April than any month in at least five years, led by homes priced under $3 million. Homes were also on the market a shorter period than at any other time in the past five years. Prices showed continued strength.

April’s median sales price was $.7 million, a 3% increase from $3.6 million in March and a 22% ($662,000) increase from $3,043,000 a year ago. The average sale was for 107% of the list price, up from 105% in March and 101% in April 2014. The price per square foot fell a little in April, from $1,061 in March to $1,039 in April.

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Twelve sales closed in April, the most since November 2013. April’s 12 closed sales was a 33% increase over March’s nine.

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Pending sales surged ahead in April, after falling in March. As I suspected, March was an aberration and not a trend. 17 sales went to contract in April, more than double March’s eight and the most here in at least five years. Inventory was unchanged from March’s 26 homes. That cut the supply relative to sales from 3.5 months at the end of March to 1.5 months at the end of April. One year ago, we had a 4.1 month supply.

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After increasing in March, the number of days homes were on the market fell sharply in April. April’s closed sales were listed an average of only 17 days, the shortest period in at least five years. The average for the past year was 43 days.

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Analysis by Price Range

Homes priced under $3 million lead the Los Alto market forward in April with pending sales more than tripling, from three in March to ten in April. October 2012 was the last time we saw that many sales go to contract in a month in this segment. Inventory, on the other hand, was cut from 10 units in March to only four at the end of April. There was less than a two week supply at the end of April, down from 3.3 months at the end of March. Homes priced under $3 million accounted for 59% of Los Alto Hills’ pending sales in April but only 15% of its inventory.

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Pending sales of homes in the $3 million to $4,999,999 price range also increased in April. Five sales went to contract, compared to two in March. Inventory increased as well, from seven at the end of March to nine at the end of April. A 1.8 month supply was on the market at the end of April, down from 3.5 months at the end of March. 35% of Los Alto Hill’s inventory and 29% of its pending sales were in this price range.

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The $5 million-plus home market was the softest segment of the market in April, which made up 50% of inventory but only 18% of sales. Inventory increased by four homes to end April with 13. Two sales went to contract in April, one less than in March. That more than doubled the supply relative to sales from 3.0 months at the end of March to 6.5 months at the end of April.

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