- Sales continue to decline, especially for homes under $2 million
- Prices lower
- Inventory down, driven by homes under $2 million
The Los Altos real estate market looks to have slowed during August with both inventory and sales declining. The under $2 million segment drove both sales and inventory lower. Homes were on the market longer and sold for less relative to the sales price than in previous months (although that ratio was still over 100%).
The median sales price has remained in a narrow band for the past several months and August was no different. That price was $2,250,000 in August, down $50,000 or 2.2% from $2,300,000 in July. August’s median price was 2% or $46,000 higher than August 2013’s $2,204,000. The average price per square foot increased nearly 5% from $978 in July to $1,026 in August. A year ago, the average price per square foot was $902, which was $124 lower than the current price. On average, sales in August were for 106.2% of the list price, down from 110.4% in July. It was the first time since February that this ratio was below 110%. One year ago, homes sold for about 105% of the list price.
Closed sales fell 30% in August from 30 in July to 21. That was the fewest closed sales since February. 36 sales closed in August 2013.
Inventory fell 17% in August, from 18 homes at the end of July to 15 at the end of August. 19 properties were actively listed a year ago. 20 sales went to contract in August, four less than in July, a 17% decline. 27 sales went to contract in August 2014. Inventory relative to pending sales was unchanged at about three weeks.
Homes were on the market an average of 25 days in August, nearly double July’s 13 days. August was the first time since January (30 days) that this number was more than 19 days. One year ago, homes were listed for an average of 25 days.
Analysis by Price Range
Homes priced under $2 million were responsible for most of the changes in the market in August. 10 sales went to contract in this segment in August, five fewer than in July, and a 33% loss. There were also 15 pending sales a year ago. Inventory fell from five in July to three in August, which was the same number as a year earlier. Inventory relative to pending sales was little changed at about 0.3 months. 50% of Los Altos’ pending sales in August and 20% of its inventory at the end of the month were priced under $2 million.
There was no change in the market for homes priced from $2 million to $2,999,999 in August. Both sales and inventory were unchanged from July at six. This price range accounted for 40% of Los Altos’ inventory and 30% of its pending sales. One month of inventory was on the market at the end of both July and August.
There wasn’t a lot of change in the $3 million-plus market either. Inventory declined by one unit to six at the end of August. Four sales went to contract during August, one more than in July. Inventory relative top pending sales decreased from 2.3 months at the end of July to 1.5 months at the end of August. 40% of inventory and 20% of pending sales were priced over $ 3 million.