- Prices firming?
- Inventory up 50%
- Pending sales inch higher
- Low end still driving the market
- Homes that do sell, don’t stay on market long
February was a bit of a mixed market in Menlo Park. Inventory increased 50%, which was much needed but sales did not follow along – that will most likely happen in March. Demand remained strong in the low end of the market (homes priced under $2 million) but was somewhat spotty. Pricing is critical in this market and homes that are priced appropriately sell quickly. The homes that sold in February were on the market only 14 days, on average. Prices appear to have firmed up in February after four shaky months, hopefully the beginning of a trend.
The median sales price in February was $2,420,000, a 7% increase from $2,270,000 in January. February’s median was also 10% higher than it was in February 2015 ($2,205,000), the first time in four months that the median price was higher than a year ago. The price per square foot was $1,317 in February, $249 or 23% higher than January’s $1,068 and $211 or 19% higher than February 2015’s $1,106. On average, homes sold for nearly 110% of their list price in February, a sharp increase from 101% in January and about the same as a year earlier.
Closed sales decreased in February, from 16 in January to 14. February also had five fewer closed sales than February 2015.
Pending sales ticked up three units in February to a total of 18. That was the same number of pending sales as in February 2015. A net of 15 properties were added to inventory during February, increasing the number available for sale from 30 at the end of January to 45 at the end of February, a 50% increase. 38 homes were actively listed a year ago. With inventory rising faster than sales, supply increased from 2.0 months at the end of January to 2.5 months at the end of February. A 2.1 month supply was available at the end of February 2015.
On average, February’s closed sales were on the market only 14 days, down from 43 days for January’s sales and 19 days for February 2015’s. It was the shortest time on the market since January 2015.
Analysis by Price Range
Both inventory and sales of homes priced under $2 million increased in February. These homes accounted for 50% of pending sales during February and 44% of inventory at the end of the month. Pending sales increased from six in January to nine in February, on par with the 10 sales that went to contract in February 2015. 20 properties were actively listed at the end of February, four more than at the end of January but two less than a year ago. A 2.2 month supply was on the market at the end of February, down from 2.7 months at the end of January.
Ten homes priced from $2 million to $2,999,999 were actively listed at the end of February, up from eight at the end of January. Pending sales fell by two units to six during February. That increased the supply relative to sales from one month at the end of January to 1.7 months at the end of February. This price range made up 22% of Los Alto Hills’ inventory and a third of its pending sales.
The inventory of homes priced at or above 43 million more than doubled in February, from six at the end of January to 15 at the end of February. That was a third of the entire city’s inventory. Three sales went to contract during February, one more than in January. 17% of Los Altos Hills’ inventory was in this segment. There was a five month supply at the end of February, down from six months at the end of January.