- Sales stay strong
- Prices increase
- Demand high, especially for lower priced homes
- Inventory low
- Homes on market only 15 days
September is usually when we begin to see things begin to slow down in the real estate market as we head into fall. The data for Los Altos Hills, however, does not indicate there is any slowing going on here. Even with low inventory levels continuing to constrain sales, both pending and closed remained high and all price indicators increased. Anecdotally though, the pace has been less frantic. There have been fewer multiple offers, although they remain common, especially for homes priced in the low end of their price band. Some buyers “revisit” properties as they realize inventory is tight and what they saw yesterday just may be the best property that is on the market today.
The median sales price in August increased slightly to $3,426,000, just $26,000 higher than in August. September’s median sales price was $209,000 lower than September 2014’s $3,635,000. The price per square foot increased 11%, from $1,087 in August to $1,203 in September. September was $14 higher than a year ago. The average sale in September was for nearly 110% of the list price, up from 108% in August and 97% a year earlier.
Closed sales dipped from 11 in August to nine in September, which is the average number of closed sales here in the past twelve months.
Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take caution with the following data.
Current data shows inventory falling by one unit in September to 28. That number is likely to be restated higher once the data is finalized. 13 sales went to contract in September, two more than in August. Again, once restated, the number of pending sales in September will probably be lower. Supply relative to pending sales (2.9 months) was lower at the end of September than the end of August (3.6 months). Once restated, the supply will probably not change much from August.
September’s ales were on the market an average of only 15 days, the fewest in at least five years. This number was 24 days in August and 82 days only two months ago. Homes were listed an average of 83 days in September 2014.
Analysis by Price Range
The inventory of homes priced under $3.5 million fell from 11 at the end of August to five at the end of September, 13% of Los Altos Hills’ total supply. Pending sales increased two from August to eight during September, accounting for 62% of the total, reflecting the strong demand for homes in this segment. Inventory relative to pending sales fell from 1.8 months at the end of August to 0.6 months at the end of September.
Homes priced from $3.5 million to $4,999,999 made up 42% of Los Alto Hills’ inventory at the end of September abut only 23% of pending sales during the month. 16 homes were available for sale at the end of September, two more than at the end of August. Three sales went pending during September, one more than in August. Supply increased form 3.5 months at the end of August to 5.3 months at the end of September.
$5 million-plus homes made up a larger share of inventory here (45%) than any other segment, but had the fewest pending sales (two). 17 homes were actively listed at the end of September in this segment, up from 14 at the end of August.