- Inventory stays at 10 year low
- Pending sales up from the bottom
- Median sales price higher
- Sales to list price lower
- Closed sales lowest in two years
What’s surprising is that pending sales in Menlo Park jumped in January in spite of the fact that inventory remained unchanged at a ten year low. That’s an indication of the demand here. Homes that came on the market during January were snapped up quickly. Strong demand, historically low inventory and rising prices continue to tell the story of the Menlo Park real estate market.
December’s median sales price was $2,325,000, which was $325,000 or 16% higher than December’s $2.0 million. January was also 45% higher than a year ago. The average price per square foot also increased in January, from $901 in December to $1,084, a 20% jump. That was also 36% higher than January 2014’s $800. The one price indicator that fell in January was the sales price to list price ratio. January’s 101% was the lowest since August 2012’s 99%. The ratio was 105% in December and 108% in January 2014. January was the first time in over a year that the ratio was below 105%.
Ten sales closed in January, the fewest since four closed in January 2013. January’s sales were less than half December’s 23 and four less than a year ago.
Nine homes were actively listed at the end of January, the same number as at the end of December and less than half the level of a year ago. 17 sales went to contract during the month, an increase of 11 from December’s sales. One year ago, 20 sales went pending. Inventory relative to ending sales was cut from 1.5 months at the end of December to 0.5 months at the end of January, compared to 1.0 month at the end of January 2014.
January’s sales were on the market for an average of 19 days, down from 29 days in December and 24 days a year earlier.
Analysis by Price Range
Only one home priced under $1 million was on the market at the end of January, compared to two in December and five a year ago. Three sales went pending in this segment during January, one more than in December. A 0.3 month supply was available at the end of January, down from 1.0 month at the end of December. This segment made up 11% of Menlo Park’s inventory and 18% of its pending sales.
No homes priced from $1 million to $1,999,999 were actively listed at the end of January. Two such homes were available at the end of December and eight a year ago. Pending sales took a big jump in this segment, from two in December to eight in January, accounting for 47% of the city’s total inventory.
Homes priced at or above $2 million made up 89% of Menlo Park’s inventory and 35% of its pending sales. Inventory increased by three units, from five at the end of December to eight at the end of January. Six sales went pending in January, triple December’s sales. That cut supply from 2.5 months at the end of December to 1.3 months at the end of January.