- Sales up sharply
- Inventory down just as sharply
- Price indicators decline – even with extremely strong demand
- Demand strong in all price ranges
- $3 million plus sales continue to surge
May was an interesting month for the real estate market in Los Altos. Demand remained extremely strong, as evidenced by the 56% spike in pending sales from April’s already high number. Inventory couldn’t keep pace and fell 44%. Even with those changes, price indicators were down from April and homes were on the market a little longer. Not to worry though; prices were still strong, as homes sold for nearly 112% of their list price, on average. As prices have soared the past couple of years, homes in the $3 million and up price range make up a much larger portion of both inventory and sales here.
The median sales price in May was $2,605,000, off $70,000 from April’s $2,675,000. May’s price was, however, nearly 10% or $225,000 higher than a year ago. The price per square foot also fell in May, from $1,220in April to $1,185. May’s price per square foot was 19% higher than a year earlier. The average sale in May was for 111.7% of the list price, down from 112.8% in April but higher than the 108% recorded in May 2014. For the second straight month, homes were on the market a little longer in May. May’s closed sales were listed for an average of 37 days, compared to 31 days in April and 38 days in May 2014.
Closed sales increased for the fourth consecutive month. 37 sales closed in May, sic more than April’s 31. May, however, had one less closed sale than did May 2014.
50 sales went to contract in May, a whopping 56% increase from 32 in April, a number that would have been the third most for any month in 2014. May’s 50 pending sales were the most we have seen here in several years. After increasing the past four months, inventory finally caved in to the high level of sales, declining 44%, from 55 at the end of April to 31 at the end of May. That left just a 0.6 month supply, down from a 1.7 month supply at the end of April and 1.2 months a year ago.
Days on market increased for the second straight month in May. May’s sales were listed for 38 days, on average, compared to 30 days in April and 29 days a year ago.
Analysis by Price Range
Sales of homes priced under $2 million increased by50%, while inventory was cut in half. Five properties were available for sale at the end of May, down from 10 at the end of April. 12 sales went to contract in May, four more than April’s eight. That cut supply from about five weeks at the end of April to less than two at the end of May. 16% of Los Altos’ inventory and 24% of its sales were priced under $2 million.
More than half (56%) of Los Alto’s pending sales in May were priced from $2 million to $2,999,999, as were nearly a third of its inventory. 28 sales went pending in May, 10 more than in April. Inventory was cut 60%, from 26 in April to 10 in May, leaving a supply of only 11 days.
The market for homes priced over $3 million is seeing activity like it never has before. 10 sales went to contract in this segment in May, the most ever. The previous high was eight, set just two months ago. Those 10 sales represented 20% of Los Altos’ total. 16 properties were actively listed at the end of May, three less than at the end of April. That still made up 52% of the city’s total, most likely the highest share ever as well. Inventory relative to sales was cut in half, from 3.2 months at the end of April to 1.6 months at the end of May.