- Demand surprisingly strong but uneven
- November sales well ahead of pace from a year ago
- Inventory falls sharply – lowest point in years
- Prices down
- Still a seller’s market
Los Alto is still very much a seller’s market. Inventory was at its lowest point in years at the end of November while sales remained surprisingly strong for this time of year. There is a sense that the market may be plateauing, at least as it pertains to the large year-over-year price increases we have been experiencing. Buyers remain active and willing to move when they find a property they like but they are also a little more cautious. The Fed’s impending interest rate increase may be introducing some uncertainty but does not appear to be slowing the market down.
November’s median sales price was $2,614,000, 10% or $286,000 lower than October’s $2.9 million but 3% higher than November 2014’s $2,531,500. The price per square foot fell for the second straight month, from $1,252 in October to $1,204 in November, a drop of nearly 4%. November’s price per square foot was also $5 lower than a year ago, the first time since July 2013 that the price per square foot was lower than it was a year earlier. The average sales price to list price ratio was 106%, which while strong, was the lowest ratio since January. The ratio was 198% in October and 110% a year ago.
Closes sales fell for the sixth straight month, although by only one unit. 22 sales closed in November, compared to 23 in October and 14 a year ago.
Only 20 homes were actively listed in Los Alto at the end of November, less than half the number at the end of October. That was also seven homes less than was available for sale a year ago. Inventory is lower than at any point in at least 10 years. Pending sales fell for the sixth straight month, but not by much. 21 sales went to contract in November, two less than in October but seven more than a year ago. Inventory relative to pending sales fell below one month for the first time in two years.
November’s closed sales were listed for an average of 15 days, little changed from 14 days for October’s sales and 13 days a year ago.
Analysis by Price Range
Twice as many sales went to contract in the sub-$2 million market segment during November as were available for sale at the end of the month. That meant there was only a two week supply in this segment. Two homes were actively listed at the end of November, down from seven at the end of October. Those two homes represented 10% of Los Altos’ total inventory. Pending sales increased from three in October to four in November, accounting for 19% of all sales.
10 properties priced from $2 million to $2,999,999 were actively listed at the end of November, less than half the 21 that were listed at the end of October. Pending sales fell by three units, from 15 in October to 12 in November. A 0.8 month supply was available in this segment at the end of November, compared to a 1.4 month supply at the end of October. This price range accounted for half of all inventory and 57% of pending sales.
The $3 million and up segment made up 40% of Los Altos’ inventory at the end of November and 24% of pending sales during the month. Inventory fell from 13 at the end of October to eight at the end of November, which was 40% of the total. Pending sales were unchanged at five, which was 24% of total sales. There was a 1.6 month supply at the end of November, down from 1.6 months at the end of October.