- Pending sales double
- Inventory up 150%
- Prices stable
- Days on market very low
- $2 million to $3 million homes continues to be where the action is
The Los Alto real estate market broke out of its winter slumber in a big way in March. Pending sales and inventory were both up sharply. A very good indication of demand was that homes were on the market an average of only 10 days in March. Properties that are appropriately priced are moving quickly, while others are staying on the market longer. Price indicators did not change much from February to March. The middle of the market (homes priced from $2 million to $3 million) make up the biggest portion of the inventory here and are seeing the most sales.
March’s median sales price was $2.8 million, unchanged from February but 9% or $275,000 lower than a year ago. It was the first time the median sales price was lower than that of a year earlier since January 2014. The price per square foot was off a little, from $1,334 in February and $1,343 a year ago to $1,310 in March. On average, homes sold for 108% of their asking price in March, down from 111% in February and 112% in March 2015.
Closed also had a big increase in March, from 11 in February to 19. That was still well behind the 27 sales that closed in March 2015. March’s closed sales were on the market an average of 10 days, one day more than in February and equal to a year earlier.
51 properties were actively listed at the end of March, a 150% spike from 20 at the end of February and on par with the 48 homes available a year ago. Pending sales doubled, from 11 in February to 22 in March. That was still behind the pace of sales a year ago, when 27 sales went pending. Inventory increased faster than pending sales, pushing the available supply from 1.8 months at the end of February to 2.3 months at the end of March.
It has not been taking long for homes that are priced right to sell. March’s closed sales were on the market an average of 10 days, one more day than in February but one less day than a year ago.
Analysis by Price Range
Both the inventory and pending sales of homes priced under $2 million increased in March. Inventory more than doubled, from three at the end of February to seven at the end of March. Pending sales increased form one in February to three in March. That left a 2.3 month supply at the end of Mach, down from 3.0 months at the end of February. This segment accounted for 14% of both sales and inventory.
55% of Palo Alto’s inventory and 63% of its pending sales were priced from $2 million to $2,999,999. Both sales and inventory doubled. Pending sales increased from seven in February to 14 in March, while inventory jumped from 13 at the end of February to 28 at the end of March. There was a two month supply available at the end of March, up a little from February’s 1.9 months.
The $3 million-plus segment had the biggest increase in inventory in March, from four at the end of February to 16 at the end of March, accounting for 31% of Palo Alto’s supply. Five sales went to contract in March, two more than in February. 23% of pending sales were priced at or above $3 million. The big jump in inventory resulted in a 3.2 month supply at the end of March, up from a 1.3 month supply at the end of February.