With sales rising and inventory declining, you couldn’t be blamed for thinking the real estate market in Menlo Park is a seller’s market. However, there is a clear sense in the marketplace that it is moving into one for buyers. Buyers are cautious about writing offers as they know homes are staying on the market longer. With homes not selling as quickly, the perception is of more inventory. Contingent offers are even becoming more common and we have not seen many of those for quite some time. Pricing was mixed in June, with homes selling for less per square foot than in May and at a lower ratio to their list price. On the other hand, the median sales price increased.
Median Sales Price
After dipping below $2 million in May, the median sales price rebounded 12% to $2,221,000 in June. May’s median was also 10% higher than a year ago. Conversely, the price per square foot dropped $51 to $1,196 in June, which was only $7 more than a year ago. On average, homes sold for 105% of their list price in June, compared to 107% in May and 112%in June 2015.
39 sales closed in June, the most since October 2014. 26 sales closed in May and 33 in June 2015.
For Sale vs. Pended
Pending sales rose for the fourth straight month, from 32 in May to 37 in June. There were also 32 pending sales a year ago. 53 homes were actively listed at the end of June, down from 69 at the end of May and 59 a year ago. A 1.4 month supply relative to pending sales was on the market at the end of June, equal to a year earlier but down from 2.2 months at the end of May.
Days to Sell
Sales in June closed in an average of 22 days, the most since December. That was six more days than in May and seven more than in June 2016.
Analysis by Price Range
Under $2 million
Pending sales of homes priced under $2 million increased in June, while inventory declined. 27 homes were for sale at the end of June, ten less than at the end of June. 22 sales went to contract during June, compared to 19 during May. This segment accounted for 51% of all inventory and 60% of pending sales. Supply fell from 1.9 months at the end of May to 1.2 months at the end of June.
$2 million to $2,999,999
The $2 million to $2,999,999 price range made up 19% of both inventory and sales. Ten homes were actively listed at the end of June, two less than at the end of May. Seven sales went pending during June, two more than in May. A 1.4 month supply was available at the end of June, down from 2.4 months at the end of May.
Above $3 million
The inventory of homes price at or above $3 million fell form 20 at the end of May to 16 at the end of June, representing 30% of the city’s total. Pending sales were unchanged at eight, which was 22% of all sales here. The supply relative to sales was cut from 2.5 months at the end of May to 2.0 months at the end of June.
Check out these other Real Estate Market Conditions Reports for June 2016: