The Menlo Park real estate market feels like it’s in a bit of a holding pattern right now. That’s not to say there is no activity; rather there is no clear direction at the moment. As we enter fall, things typically slow down. There are still buyers willing to act and pending sales even ticked up a little from July. On the other hand, homes are staying on the market longer and buyers have proven to be a bit more discerning. Homes are still selling, on average, above their list price but not by as much as we were accustomed to the past couple of years.
Median Sales Price
The average sale in August was for a little more than 103% of the asking price, little changed from July. That’s not far off the 104% of a year ago. Due largely to a greater mix of lower end homes sales closing in August, the median sales price fell 18.5% in July, from $2,215,000 to $1,805,000. The price per square foot, on the other hand increased 11.5%, from $1,001 in July to $1,116 in August (again due mostly to the higher mix of lower end sales which tend to have higher prices per square foot – all else being equal).
24 sales closed in August, one more than in July but nine less than a year ago.
For Sale vs. Pending
Pending sales have been on a bit of a roller coaster lately. They hit a 22 month high in June and then fell 39% in July before rebounding a little in August. 27 sales closed during August, compared to 24 in July and 30 in August 2015. Inventory, which hit a two year high in May, fell in June and July before posting a nice 18.5% increase in August. 64 homes were actively listed at the end of August, ten more than at the end of July and 19 more than a year ago. Inventory relative to pending sales increased a little to 2.4 months at the end of August, from 2.2 months at the end of July. August’s market was not nearly as tight as a year ago, when only a 1.5 month supply was on the market.
Days to Sell
Homes stayed on the market longer in August than any time since January. On average, homes were listed for 32 days in August, up from 19 days in July and 29 days a year earlier.
Analysis by Price Range
Under $2 million
31 homes priced under $2 million were available for sale at the end of August. That was down from 25 in July and 22 in August, 2015. Pending sales were unchanged from July at 13, one less than a year ago. Supply rose from 1.9 months at the end of July to 2.4 months at the end of August. This segment accounted for 48% of both sales and inventory.
$2 million to $3 million
Inventory and pending sales of homes priced from $2 million to $2,999.999 both fell by one unit in August. 10 homes were actively listed at the end of August, while five sales went to contract during the month. Supply ticked up to 2.0 months at the end of August form 1.8 months at the end of July. 16% of Menlo Park’s inventory and 19% of its pending sales were in this price range.
$3 million or over
Pending sales of homes priced over $3 million increased form five in July to nine in August, making up a third of all sales here. Inventory was up five units, from 18 at the end of July to 23 at the end of August. 36% of the city’s inventory was priced at or above $3 million. A2.6 month supply was available at the end of August, down from 3.6 months at the end of July.
Check out these other Real Estate Market Conditions Reports for August 2016: