While sales increased and inventory fell in June, there is evidence that the market is softening. Even though inventory declined, it was coming off a three year high in May. There are still a lot of homes for sale here and, in addition to those actively listed, there are homes available that are not on the multi list. Price indicators also showed softness in June. It’s not all bad news though, since homes still sold for 104% of the list price in June. Buyers remain active but are more selective. There are even more contingent offers, something we haven’t seen much of for a while.
Median Sales Price
After breaching $3 million for the first time in May, the median sales price fell back 8.6% to $2,789,000 in June. June’s median price was also $11,000 lower than a year ago. June’s price per square foot was $1,154, the first time since December that it was below $1,200. The sales price to list price ratio in June was 104%, down from 106% in May and 113.5% in June 2015. June was the second straight month that this ratio declined.
Closed sales, following the increase in pending sales over the past few months increased from 29 in May to 40 in June. That was the most closed sales here since May 2013.
For Sale vs. Pended
More sales went to contract in June (38) than in any month since August 2013. June’s sales were an increase of nine over May’s. Last month, Atherton had more homes actively (74) listed than at any time since July 2013. We came down some from that high in June and ended the moth with 60 homes for sale. A 1.6 month supply was on the market at the end of June, compared to 2.6 months at the end of May and 1.6 a year ago.
Days to Sell
At 18 days, homes were on the market longer in June that in any month since December. May’s sales were listed for an average of 12 days.
Analysis by Price Range
Under $2 million
Seven homes price under $2 million were available for sale at the end of June, one less than at the end of May. Those seven homes were 11% of the total supply. Pending sales increased by one unit to three during June, accounting for 8% of Los Altos’ sales. Supply slipped from four months at the end of May to 2.3 months at the end of June.
$2 million to $2,999,999
Half of all inventory and 55% of pending sales were priced from $2 million to $2,999,999. Inventory fell from 40 at the end of May to 30 at the end of June. Pending sales increased by half, from 14 in May to 21 in June. That dropped the relative supply from 2.9 months at the end of May to 1.4 months at the end of June.
$3 million or more
In the $3 million+ segment, pending sales increased by one to 14 in June, while inventory fell three units to end the month with 23. 38% of Palo Alto’s inventory at the end of June and 37% of pending sales during the month were priced at or above $3 million. A 1.6 month supply was on the market at the end of June.
Check out these other Real Estate Market Conditions Reports for June 2016: