- Market reverses from slowing trend
- Pending sales up 47%
- Closed sales increase after falling for four months
- Prices increase
- Inventory falls 20%
The Los Altos real estate market reversed its slowing trend by posting sharply higher sales in October, driven by homes priced under $3 million. The inventory of these homes dropped correspondingly. All price indicators rose in October.
After treading water in a fairly narrow range for most of the year, the median sales price broke out in October and posted its highest number in at least three years. The median sales price in October was $2,505,001, up 6.6% or $154,001 from $2,351,000 in September. It was also 17% higher ($365,001) than October 2013’s $2,140,000.
The average price per square foot increased $74 or 7%, from $1,017 in September to $1,091 in October. October’s average was 14% of $132 higher than October 2013’s $959. The sales price to list price ratio was 112% in October, the highest since May. In September, the ratio was 107,5% and a year ago it was 103.5%.
Closed sales increased by nine units, from 19 in September to 28 in October. October also had three more closed sales than a year earlier.
28 sales went to contract in October, a 47% increase (nine units) from 19 in September. October also had five more sales go pending than did October 2013. Inventory fell 20%, from 20 homes at the end of September to 16 at the end of October. 13 properties were actively listed a year ago. The drop in inventory and increase in sales dropped the supply of homes to under one month again. There was a 0.6 month’s supply at the end of October, down from 1.1 months at the end of September. September was the first time in over two year that there was more than a one month supply.
Homes were on the market for an average of 18 days in October, little changed from September’s 17 days. One year ago, properties were on the market an average of 13 days.
Analysis by Price Range
The inventory of homes priced under $2 million was cut in half, from four at the end of September to two at the end of October. That was a quarter of the inventory in this segment a year ago. Pending sales more than doubled, from six in September to 13 in October. That was still three less than went pending in October 2013. There was about five days of inventory at the end of October, down from 0.7 months at the end of October and two weeks a year ago. 46% of Los Altos’ pending sales and 12.5% of its inventory were priced below $2 million.
Inventory was also cut in half for homes priced from $2 million to $2,999,999, from eight at the end of September to four at the end of October. Only two homes were available in this price range a year ago. Pending sales increased by a third, from nine in September to 12 in October. That compares to seven a year earlier. Inventory relative to pending sales fell from 0.9 months at the end of September to 0.3 months at the end of October. This price range accounted for 25% of inventory and 43% of pending sales.
10 homes priced at $3 million or more were on the market at the end of October, two more than at the end of September and seven more than a year ago. Pending sales fell from four in September to three in October, compared to none in October 2013. There was a 3.3 month supply of these homes at the end of October, up from 2.0 months at the end of September. 63% of Los Altos’ inventory was in this segment, while only 11% of pending sales were priced at or above $3 million.