Los Altos real estate

Los Altos Market Conditions February 2015

  • Inventory rises again
  • Pending sales jump
  • Price indicators rise

More homes came on the market in Los Altos in February and buyers took advantage. Inventory increased 39% from January – a nice gain but from a small base. Pending sales jumped 69%, showing the strength of pent up demand here. Homes priced from $2 million to $3 million saw the biggest gains in both inventory and sales.

Prices rebounded after slipping the past two months. February’s median sales price was $2,692,500, 15% higher than January’s $2,350,000. That was also about 15% higher than the median sales price a year ago. The sales to list price ratio jumped from 104% in January to 109% in February, matching the ratio of a year earlier. ON the other hand, the average price per square foot fell for the third consecutive month, from $1,062 in January to $1,046 in February. February was still $46 higher than a year ago.

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Low inventory continued to dampen sales. However, sales did increase, with 18 sales closing during February, four more than in January and six more than a year ago.

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18 homes were for sale at the end of February, a gain of five (39%) from January’s 13. That was the highest inventory level here since September. One year ago, 14 properties were actively listed. 22 sales went to contract in February, up nine (69%) from 13 in January and one more than a year ago. Inventory relative to pending sales slipped form 1.0 month at the end of January to 0.8 months at the end of February.

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February’s closed sales were on the market for an average of 26 days, up from 11 days in January and 14 days in February 2014.

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Analysis by Price Range

The market for homes priced under $2 million is very hot. While month-end inventory fell from one unit at the end of January to zero at the end of February, five sales went to contract during February. Meaning, anything that was for sale in this segment sold quickly. 23% of Los Altos’ pending sales were in this segment.

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February ended with nine homes priced from $2 million to $2,999,999 available for sale, an increase of four units from January’s five. That was the most since we had 11 in April 2014. One year ago, four homes were actively listed in this price range. Pending sales moved in lock step, increasing form five in January to nine in February. Six sales went to contract in February 2014. A one momth supply was on the market at the end of February, unchanged from January. This price range accounted for 50% of inventory and 41% of pending sales.Los Altos-MC-FEB-06

The $3 million-plus segment also saw nice increases in both supply and sales. Two homes were added to inventory and February ended with nine on the market. Pending sales increased by three, from five in January to eight in February. A 1.1 month supply was on the market at the end of February down slightly from 1.4 months at the end of January. 50% of Los Altos’ inventory and 36% of its pending sales were priced at or above $3 million.

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