Menlo park real estate

Menlo Park Market Conditions August 2015

  • Median sales price and price per square foot increase
  • Sales price to list price falls
  • Demand softening
  • Inventory remains low

There were mixed signals on the pricing front in Menlo Park in August. On one hand, the median sales price and price per square foot increased. On the other hand, the sales price to list price ratio fell sharply again, although it remained over 103% on average. While demand remains high, the fact that pending sales fell and homes stayed on the market longer, is an indication that demand may be softening.

The median sales in August increased $305,000 or 15%, from $2,020,000 in July to $2,325,000. That was 34% higher than August 2014’s $1,738,000. The price per square foot also increased in August to $1,128, from $1,094 in July and $800 a year ago. The price per square foot has been over $1,000 since January and shows no indication of returning to the $840 average for 2014. The one price indicator that fell in August was the sales price to list price ratio, which has tumbled from 111% in June to 103.7% in August. A year ago, this ratio was 106%. The average for 2015 is 108%.

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Closed sales, while still strong, dipped from 37 in July to 37 in August. August also had one less closed sale that a year earlier.

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Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take some caution with the following data. Pending sales fell in August, from 29 in July to 27. That drop will likely be even greater as the numbers are restated next month. So that’s another indication that the market may be slowing down a bit. Inventory fell from 37 in July to 27 in August. While this number will likely be restated higher, it will not likely increase much, if at all, from July.

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The average sales in August was on the market for 29 days, up from 19 in July and 25 a year ago.

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Analysis by Price Range

We have changed the price ranges in Menlo Park beginning this month. Due to the sharp rise in prices over the past year, there have been fewer and fewer homes price below $1 million. The old ranges were under $1 million, $1 million – $1,999,999 million and $2 million-plus. The new range are under $2 million, $2 million to $2,999,999 million and $3 million-plus. The new ranges better reflect the Menlo Park real estate market at this time.

In the sub-$2 million segment, 10 properties were actively listed at the end of August and 10 sales went pending during the month. That’s a one month supply relative to pending sales. 37% of both inventory and pending sales were priced below $2 million.

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The $2 million to $2,999.999 price range saw inventory drop sharply in August, from 17 at the end of July to only five at the end of August.   13 sales went to contract in August. That left less than a two week supply at the end of August. This price range accounted for 48% of Menlo Park’s pending sales but only 19% of its inventory.

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Twelve homes were available for sale in the $3 million-plus segment at the end of August, while four sales went pending during the month. That meant a three month supply was available. Homes in this category made up 44% of inventory and 15% of pending sales.

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