- Inventory can’t keep pace with demand – less than a month’s supply
- Pending sales double
- Median sales price over $3 million – new high
- Homes not on market for long
The demand for housing here seems insatiable in Los Altos. Homes that come on the market are selling very quickly and there are clearly more buyers than seller. Pending sales more than doubled in March and inventory fell. There is only one way for prices to go and that is up. Homes priced from $2 million to $3 million lead the surge in sales.
The median sales price in March was $3,075,000, the first time it has ever cracked the $3 million mark. That was a 14% increase from February and a 27% increase from a year ago. The price per square foot also set a new high at $1,343, up 28% from February and 34% from March 2014. March’s sales were for 112% of the list price, compared to 109% in February and 115% a year earlier.
28 sales closed in March, ten more than in February but one less than a year ago. With the high number of pending sales in March, we can expect this number to be higher again in April.
42 sales went to contract in March. That matches the five year high here set in October 2012. It was also more than double February’s 19 and 12 more than March 2014’s 30. Inventory just couldn’t keep pace, falling three units to end March with 29 actively listed properties. One year ago, 41 homes were on the market. The sharp increase in pending sales and drop in inventory left only a 0.7 month supply at the end of March, down from 1.7 months at the end of February and 1.4 months a year ago.
It’s not taking buyers long to act. March’s closed sales were on the market an average of only 11 days. That compares to 26 days in February and 12 days a year ago.
Analysis by Price Range
Both inventory and sales increased a little in the market for homes priced under $2 million. Inventory increased from four properties at the end of February to seven at the end of March. Pending sales increased by two units, from five in February to seven in March. The result was a one month supply at the end of March. 24% of Los Altos’ inventory and 17% of its sales were in this segment.
The $2 million to $2,999,999 price range dominated the activity here in March, with 24 sales going to contract, 57% of the total. That was more than triple February’s seven sales in this category. 10 properties were on the market at the end of March, down four from 14 at the end of February. That left less than a two week supply of home for sale. 34% of Los Altos’ inventory was in this price range.
Sales of homes priced over $3 million increased, while inventory fell. 11 sales went to contract in March, four more than in February. Inventory fell by two units to end March with 12. This segment accounted for 41% of the city’s inventory and 26% of its pending sales. A 1.1 month supply of homes for sale was available at the end of March.