Los Altos Hills real estate

Los Altos Hills Market Conditions February 2015

  • Pending sales jump
  • Closed sales match 12 month high
  • Inventory falls – less than a month’s supply
  • Prices rise – sale price to list price ratio highest in many years

February was a good indication of how insatiable demand is in Los Altos Hills. Any increase in inventory is matched or exceeded by buyers ready to act. Inventory fell 31% from January, while pending sales more than doubled. Sales increased across market segments. The surge in sales and loss of inventoyr left less than a one month supply. Every indicator of prices increased in February, with homes selling at 113% of their list price.

February’s median sales price was $3.7 million, an 18% ($560,000) increase from January’s $3,140,000. February was also 19% or $600,000 higher than February 2014’s $3.1 million. February’s sales closed for 113% of the list price, on average. That is the highest ratio in at least a decade. The price per square foot was the highest it has been in a year at $1,243, up from $949 in January and $1,013 a year ago. The only time in the past several years it has been higher was in January 2014 ($1,417).

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11 sales closed in February, the most since November 2013 (13). That was seven more than January’s four and eight more than a year earlier.

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Twelve sales went to contract in February, up from five in January, a 140% increase. One year ago, five sales went pending. Inventory, on the other hand, fell five units, from 16 at the end of January to 11 at the end of February, a 31% decline. 19 homes were actively listed a year ago. February ended with a 0.9 month supply of inventory, down from 3.2 months at the end of January and 3.8 months a year ago.

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The average number of days on the market in February was 26, down dramatically form 96 days in January and the fewest since April of last year. ON year ago, homes were on the market for an average of 71 days.

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Analysis by Price Range

The inventory of homes priced under $3 million fell from three at the end of January to one at the end of February. Pending sales increased from three in January to five in February. That left just more than a two week supply at the end of February, compared to 2.5 months at the end of January. Only 9% of Los Altos Hills’ ending inventory was priced under $3 million, while 42% of pending sales were in this segment.

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Five sales of homes priced from $3 million to $4,999,999 went pending in February, three more than January’s two. Inventory fell by two units to three at the end of February. The result was that there was about a one week supply of inventory in this price range at the end of February, compared to a one month supply at the end of January. This price range accounted for 27% of inventory and 42% of pending sales.

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In the $5 million-plus market segment, inventory fell one unit to end February with seven. Two sales went to contract in February, up from zero in January. 64% of Los Altos Hills’ inventory was in this category, as were 17% of pending sales.

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