- Market remained extremely hot
- Sales increased across market segments
- Inventory declined across segments
- Prices remained high some indicators fell
The Los Alto real estate market appeared to only get hotter in May with pending sales increasing 13% and inventory decreasing 36%. Pending sales during May were more than 2.5 times ending inventory. The median sales price increased a little, while other indicators of price slipped a little.
The median sales price in May was $2,380,000, up 3% or $70,000 from $2,310,000 in April. May’s median sales price was $550,000 or 30% higher than a year ago ($1,830,000), The average sales price per square foot fell below $1,000 for the first time in three months to $997, which was $130 or 12% below April’s $1,127. That was still $97 higher than a year ago when home sold for an average of $901 per square foot. The average sale in May was for 112% of the list price, which was down from 118% in April. A year ago, the average was 108%.
38 sales closed in May, five more than in April but two less than a year ago. With the continued increase in pending sales, closed sales will likely climb again next month but the lack of inventory is bound to put some downward pressure on sales.
43 sales went pending in May, up five or 13% from both April and one year earlier. May was the fifth straight month that pending sales increased. I’m not sure how long that trend can continue with the low level of inventory in Los Altos. May ended with 16 homes actively listed, nine less than April’s 25 and 19 less than May 2013’s 35. Only 11 days of inventory relative to pending sales were on the market at the end of May, down nearly 50% from 20 days at the end of April.
May’s closed sales were listed for an average of 13 days. While that was two days less than in April, it is still very low. The average for the past twelve months was 21 days.
Analysis by Price Range
Eight homes priced under $2 million were available at the end of May, one less than at the end of April. 22 sales went into contract in this segment in May, which was one more than in April. One year ago, 13 properties were actively listed and 29 sales went into contract. Inventory relative to pending sales was little changed at about 0.4 months at the end of May. This segment accounted for 50% of Los Alto’s inventory and 51% of its pending sales.
The inventory of homes priced from $2 million to $2,299,999 was more than cut in half, from 11 at the end of April to five at the end of May. 17 homes were actively listed in this price range a year ago. 15 sales went pending during May, three more than in April and seven more than a year ago. Inventory relative to pending sales was cut by two thirds, from 0.9 months at the end of April to 0.3 months at the end of May. 31% of Los Altos’ inventory and 35% of its pending sales were in this segment.
Pending sales of homes price at $3 million-plus increased from five in April to six in May. Inventory in this segment was cut by two units to end May with three. This segment made up 19% of Los Altos’ inventory at the end of May and 14% of the sales that went pending during the month.