Menlo Park Market Conditions December 2014
- Inventory sets another 10 year low
- Pending sales set new low also
- Prices down for December
- Says on market up
It’s hard to sell what isn’t there. For the second straight month, Menlo Park set a new ten year (at least) low in inventory. Pending sales were cut in half last month and dropped more than 63% in December. It was interesting that prices fell and days on the market increased in December, given the low inventory and high demand.
The median sales price in December was $1,937,550, down 3% or $59,950 from $1,997,500 in November. December was still 2.5% higher ($47,550 higher than December 2013’s $1,890,000. The median sales price for all of 2014 was $1.87 million, which was more than $300,000 higher than 2013’s and the highest for any year in at least a decade.
The average price per square foot fell for the second consecutive months and was the lowest since January 2014. The average was $879, down 7% from $949 in November but nearly 3% higher than a year ago. On average, December’s sales were for about 105% of the list price, down from 106% in November but higher than 103% a year earlier.
Closed sales fell nearly 30% for the second straight month in December, from 31 in November to 22. That was the third fewest closed sales of 2014. Only January (14) and February (18) had fewer. 20 sales closed on year ago.
Both inventory and pending sales set new lows in December (the lowest in at least 10 years). Nine properties were on the market at the end of December, down from 11 at the end of November. 16 homes were actively listed a year ago. Seven sales went pending during December, down 63% from 19 in November, which was less than half of October’s 40. Nine sales went to contract in December 2013. With pending sales dropping faster than inventory, the level of inventory relative to sales was over one month for the first time in 2014. A 1.3 month supply was on the market at the end of December, up from 0.6 months at the end of November but still below December 2013’s 1.8 months.
Homes were listed for an average of 30 days in December, up from 20 days in November but the same number as a year ago.
Analysis by Price Range
Pending sales in December matched the ending inventory of two in the market for homes priced under $1 million. Inventory was unchanged from November but was half of what it was a year ago. Pending sales were down one from November but were the same as in December 2013. A one month supply was available at the end of December, up from 0.7 months at the end of November. This segment accounted for 22% of Menlo Park’s inventory and 29% of pending sales in December.
Homes in the $1 million to $1,999,999 have been taking the brunt of the loss of both inventory and sales lately and December was no different. Inventory was cut from four at the end of November to two at the end of December. By comparison, six homes were actively listed in this price range a year ago. Three sales went to contract in December, six fewer than November’s eight and a third of December 2013’s six. The high mark for the year was 19 sales in May. Inventory relative to pending sales increased from 0.5 months at the end of November to 0.67 months at the end of December. 22% of Menlo Park’s inventory and 43% of its pending sales were in this price range.
Homes priced at $2 million and up did not avoid the drop in sales in December. Only two sales went to contract in December, a quarter of November’s eight and four less than a year ago. Inventory in this segment was five, unchanged from November. A 2.5 month supply was on the market at the end of December due to the sharp drop in sales. That compares to a 0.6 month supply at the end of November. 56% of Menlo Park’s inventory and 29% of its pending sales were priced at $2 million or more.
