Los Altos Hills Market Conditions May 2015
- Pending sales continue to climb
- Inventory drops a third
- Low end suffers greatest loss of inventory
- Prices still strong
Pending sales rose again in May, led by homes priced over $3 million. Inventory, on the other had fell again in May, with homes priced under $3 million taking the brunt of the loss. Price indicators were mixed but there is little doubt that pricing is firm, as homes are still selling well above their list price, on average.
The median sales price in May was about $2.5 million, down from $3.7 million in April. With only seven closed sales and many of them of lower priced homes, the median price drop was more a mix issue than anything else. The price per square foot increased $267 in May, from $1,039 in April to $1,306 – again, most a mix issue as lower priced homes tend to sell for more on a per square foot basis. On average, May’s sales were for 103% of the list price, down from 107% in April.
Seven sales closed in May, five less than in April and one less than a year ago.
15 sales went to contract in May, the most in nearly two years. There were 12 pending sales in April and nine in May 2014. 22 homes were actively listed at the end of May, 10 less than at the end of April and 15 less than a year ago. A 1.5 month supply was on the market at the end of May, a big cut from April 2.7 months.
Homes were on the market an average of 47 days in May, an increase of 12 days from April 35. A year earlier, homes were listed for 54 days, on average.
Analysis by Price Range
Only three homes priced under $3 million were on the market at the end of May; the fewest in this segment in at least ten years. Eight properties were available at the end of April and seven at the end of May 2014. Pending sales were flat from April at six, which was tow more than a year ago. That left only about two weeks of inventory in this segment at the end of May, compared to 1.3 months at the end of April. 40% of Los Altos’ Hills inventory and 14% of its pending sales were priced under 43 million.
Six sales of homes priced from $3 million to $4,999,999 went to contract in May, two more than in April. That made up 40% of the city’s total. Inventory in this segment fell by one unit to nine at the end of May, accounting for 41% of the total. Inventory relative to sales fell from 2.5 months at the end of April to 1.5 months at the end of May.
The inventory of homes priced at $5 million-plus fell by one unit in May to nine. Pending sales increased by one to three during May. That cut supply from 7.0 months at the end of April to 3.3 months at the end of May. This segment made up 46% of inventory and 20% of sales.
